Which of the following is a contingent liability?
A)Note payable with interest included in face amount
B)Excise tax payable
C)Property tax liability
D)Disputed additional tax assessment

Question

Quizplus · Accepted Answer

A disputed additional tax assessment represents a potential liability that may or may not be enforced, depending on the outcome of the dispute. The other options, note payable with interest included in face amount, excise tax payable, and property tax liability, are all examples of actual liabilities that the company has already incurred.

Which of the Following Is a Contingent Liability