Which one of the following would be considered a contingent liability?
A) A company owes $200,000 on inventories purchased on credit.
B) A company has $1,690,000 worth of bonds outstanding.
C) A company estimates that it will probably have to pay $2,400,000 to the Department of Environment Protection for a chemical spill.
D) The company has access to a line of credit with a bank in the amount of $3,000,000.
Correct Answer:
Verified
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