Contingent liabilities can be:
A)Probable.
B)Remote.
C)Reasonably possible.
D)Estimable.
E)All of the choices are correct.

Question

Quizplus · Accepted Answer

All of the choices are correct. Contingent liabilities include possible and probable obligations that arise from past events but aren't recognized as a liability because there's not enough information available to assess the likelihood of occurrence or the amount of the obligation. The three categories of contingent liabilities are probable, reasonably possible, and remote. Estimable means a reasonable estimate of the amount of the liability can be made.

Contingent Liabilities Can Be