7-28 Contingent claims are assets and liabilities that will come into existence at a future time often at the insistence of a customer or second party.

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Contingent claims refer to potential assets or liabilities that may arise in the future, often as a result of contractual or legal obligations. These claims are contingent on certain events or conditions occurring, such as a customer demanding a refund or a potential lawsuit being filed. Therefore, they are not yet classified as definite assets or liabilities, but they have the potential to become so.

7-28 Contingent Claims Are Assets and Liabilities That Will Come