Uncertainties from the development of new competing products are contingent liabilities.

Question

Quizplus · Accepted Answer

Uncertainties from the development of new competing products are considered business risks, not contingent liabilities. Contingent liabilities are potential liabilities that may occur depending on the outcome of a future event, typically recognized in financial accounting when the liability is probable and the amount can be reasonably estimated.

Uncertainties from the Development of New Competing Products Are Contingent