SOFE Exam SOFA-CFE Topic 1 Question 100 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 100
Topic #: 1

[All SOFA-CFE Questions]

_________________ are potential obligations that will materialize only if certain events occur in future.

AWarranties returns

BLiability omissions

CContingent liabilities

DConcealed expenses

Show Suggested Answer

Suggested Answer: C

by Kris at Sep 17, 2024, 02:32 PM

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Jutta

5 months ago

Contingent liabilities, easy peasy. Though I do wonder if any of these are related to my uncle's 'hidden' expenses.

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Dong

4 months ago

C) Maybe he has some concealed expenses that could turn into contingent liabilities.

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Shantell

5 months ago

B) I think it's related to my uncle's 'hidden' expenses.

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Leatha

5 months ago

A) Contingent liabilities are potential obligations that will materialize only if certain events occur in future.

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Lai

5 months ago

Liability omissions? Nah, that doesn't sound right. Gotta be contingent liabilities.

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Roxane

6 months ago

Hmm, I thought it was concealed expenses. Tricky question.

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Lindsey

4 months ago

Yes, that's correct! Contingent liabilities are potential obligations that will materialize only if certain events occur in future.

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Casie

4 months ago

C) Contingent liabilities

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Odette

5 months ago

That's not it either.

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Billy

5 months ago

B) Liability omissions

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Kyoko

5 months ago

No, it's not warranties returns.

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Tyisha

5 months ago

A) Warranties returns

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Golda

6 months ago

Contingent liabilities, definitely! That's what we learned in class.

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Leontine

4 months ago

Exactly, they are disclosed in the footnotes of the financial statements.

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Pamella

4 months ago

So, they are not recorded in the financial statements unless the likelihood of the event happening is probable.

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Marsha

4 months ago

Yes, that's correct. They are uncertain and depend on a future event.

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Pa

5 months ago

Contingent liabilities are potential obligations that will materialize only if certain events occur in future.

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Alonzo

6 months ago

I'm not sure, but I think it could also be A) Warranties returns because they are obligations related to product warranties.

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Leslie

6 months ago

I agree with Ling, contingent liabilities are obligations that depend on future events.

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Ling

6 months ago

I think the answer is C) Contingent liabilities.

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