A contingent liability is:
A)always a specific amount.
B)an obligation arising from the purchase of goods or services on credit.
C)an obligation not requiring a future payment.
D)a potential obligation that depends on a future event.

Question

Quizplus · Accepted Answer

A contingent liability is a potential liability that has arisen as a result of a past transaction or event;its ultimate outcome will not be known until a future event occurs or fails to occur.

A Contingent Liability Is