A customer is injured using a company's product.The potential liability that may result is called a(n)
A)contingent liability.
B)estimated liability.
C)definitely determinable liability.
D)estimated warranty liability.

Question

Quizplus · Accepted Answer

A customer's injury resulting from using a company's product falls under the category of contingent liability, which is a potential liability that may or may not occur in the future, depending on certain events or conditions. This type of liability may be recognized and disclosed in a company's financial statements, but it is not yet a definite or determinable obligation.

A Customer Is Injured Using a Company's Product