Which one of the following types of liabilities represents an existing situation involving uncertainty as to possible gain or loss that will ultimately be resolved when one or more future events occur or fail to occur?
A)Deferred credits
B)Constructive obligations
C)Equitable obligations
D)Contingent liabilities

Question

Quizplus · Accepted Answer

Contingent liabilities are potential liabilities that arise from an existing situation involving uncertainty as to possible gain or loss, which will ultimately be resolved when one or more future events occur or fail to occur. Examples include pending lawsuits or warranties on products that may or may not need to be fulfilled.

Which One of the Following Types of Liabilities Represents an Existing