Contingent liabilities can never be long term.

Question

Quizplus · Accepted Answer

Contingent liabilities can be either short-term or long-term depending on the nature of the liability. They are potential liabilities that may or may not arise from a past event, and therefore they cannot be classified as current or non-current liabilities until the likelihood of occurrence is determined. Once the probability of occurrence is determined, the contingent liability can be classified as short-term or long-term.

Contingent Liabilities Can Never Be Long Term