_____ liabilities may arise from past transactions if certain events occur in the future.

Question

Quizplus · Accepted Answer

Contingent liabilities are potential liabilities that may arise from past transactions or events, but their occurrence depends on the outcome of uncertain future events. They are not recognized as actual liabilities on the balance sheet but are disclosed in the footnotes as they could have an impact on the financial position of the company. Current, noncurrent, and long-term liabilities are all recognized as actual liabilities on the balance sheet.

_____ Liabilities May Arise from Past Transactions If Certain Events