Contingent liabilities stem from past events.

Name: Contingent liabilities stem from past events.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Contingent liabilities are potential liabilities that may arise from past events, but the occurrence and amount of which are uncertain and depend on future events. They are recognized in the financial statements as a footnote disclosure unless a loss is probable and can be reasonably estimated, in which case they are recognized as a liability on the balance sheet.

Contingent Liabilities Stem from Past Events