If an event may become an actual liability in the future, it is called a
A) potential liability.
B) hypothetical liability.
C) probabilistic liability.
D) contingent liability.

Question

Quizplus · Accepted Answer

A contingent liability is a liability that may arise in the future depending on the outcome of a certain event or condition. It is not yet a certain liability and still depends on certain conditions being met. Therefore, D is the best answer as it accurately describes a liability that is not yet certain but may become one in the future.

If an Event May Become an Actual Liability in the Future