Uncertainties such as natural disasters are:
A)Not contingent liabilities because they are future events not arising from past transactions or events.
B)Contingent liabilities because they are future events arising from past transactions or events.
C)Disclosed because of their usefulness to financial statements.
D)Estimated liabilities because the amounts are uncertain.
E)Reported in the same way as debt guarantees.

Question

Quizplus · Accepted Answer

Natural disasters are not contingent liabilities because they do not arise from past transactions or events; they are future events that cannot be predicted or measured in advance.

Uncertainties Such as Natural Disasters Are