Which statement is not correct?
A)Contingencies arise from future events.
B)The amount to be paid for contingencies is determined by future events.
C)Current liabilities arise from past events.
D)The amount to be paid for current liabilities is known or reasonably estimable.

Question

Quizplus · Accepted Answer

Contingencies are indeed related to future events, but the statement that they arise from future events is not correct. Contingencies are conditions or situations whose outcome is not determined but depends on future events. However, the recognition of a contingency in accounting is based on past events that create uncertainty about future outcomes.

Which Statement Is Not Correct