A contingent liability
A)is definite in existence, but its amount and due date are not yet known.
B)has the same requirements as a contingent gain.
C)must be accrued even when it is not reasonably estimable.
D)is disclosed only in the financial statement notes if highly probable and the amount can be estimated.

Question

Quizplus · Accepted Answer

A contingent liability is a potential liability that may or may not occur in the future. It is disclosed in the financial statements if it is probable that the liability will occur and the amount of the liability can be reasonably estimated.

A Contingent Liability