Question

Which of the following is NOT an example of a loss contingency?

A. Payment of income taxes
B. Income tax disputes
C. Guarantees of debt of others
D. Threat of expropriation of assets

Answer 1

The payment of income taxes is NOT an example of a loss contingency.

Step-by-step explanation:

A loss contingency refers to a potential loss that may arise in the future depending on the outcome of an uncertain event. Based on the given options, payment of income taxes is NOT an example of a loss contingency. Income tax disputes, guarantees of debt of others, and the threat of expropriation of assets are all examples of loss contingencies because they involve potential losses that may occur due to uncertain events or circumstances.