The two types of contingent liabilities are:
A) current obligations and non-current obligations.
B) present obligations and possible obligations.
C) present obligations and impossible obligations.
D) future obligations and possible obligations.

Question

Quizplus · Accepted Answer

Contingent liabilities are potential liabilities that may arise from past events but the occurrence of the liability depends on uncertain future events. The two types of contingent liabilities are present obligations (where the likelihood of the liability occurring is high) and possible obligations (where the likelihood of the liability occurring is low).

The Two Types of Contingent Liabilities Are