Question

Payroll is an example of a contingent liability for the employer.
A.True
B.false

Answer 1

Payroll is an example of a contingent liability for the employer.

Step-by-step explanation:

Payroll is an example of a contingent liability for the employer.

A contingent liability is a potential liability that depends on an uncertain future event. In the case of payroll, it refers to the employer's obligation to pay wages and taxes to their employees.

For example, if an employee sues their employer for unpaid wages, that would be a contingent liability because the outcome of the lawsuit is uncertain.

Therefore, the statement is true. Payroll is an example of a contingent liability for the employer.