Which of the following may NOT be accrued as a contingent liability?
A) threat of expropriation of assets
B) pending or threatened litigation
C) guarantees of indebtedness of other
D) potential income tax refunds

Question

Quizplus · Accepted Answer

Potential income tax refunds may not be accrued as a contingent liability as they represent a potential gain rather than a potential loss. Contingent liabilities only include potential losses that are not yet certain. A, B, and C are all potential losses that can be accrued as contingent liabilities.

Which of the Following May NOT Be Accrued as a Contingent