The key characteristic of contingent liabilities is:

Question

Quizplus · Accepted Answer

The key characteristic of contingent liabilities is that the liability will be confirmed only by the occurrence or non-occurrence of a future event not completely within the control of an entity. The timing of the future sacrifice of economic benefits may be uncertain, but this is not the primary characteristic of a contingent liability. A legal dispute may or may not exist, and the liability may exist beyond a reasonable doubt; these factors are not necessarily present in all contingent liabilities.

The Key Characteristic of Contingent Liabilities Is