Which of the following would NOT be considered a contingent liability?
A)Pending legal action
B)Potential fines from the EPA
C)Mortgage Payable
D)Cosigning a loan

Question

Quizplus · Accepted Answer

A contingent liability is a potential obligation that may or may not occur in the future, depending on the outcome of a specific event. Pending legal action, potential fines from the EPA, and cosigning a loan are all examples of contingent liabilities, as they represent potential future obligations that are dependent on certain conditions being met. Mortgage payable, on the other hand, is a current liability that represents a debt that is already owed and therefore would not be considered a contingent liability.

Which of the Following Would NOT Be Considered a Contingent