Which statement about contingent liabilities is correct?
A)It is a possible obligation that arises from past transactions and events.
B)It is an obligation that arises from past transactions and events.
C)It involves uncertainty about either the timing or amount of payment.
D)It is a condition that depends upon the outcome of an anticipated event.

Question

Quizplus · Accepted Answer

Contingent liabilities are possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

Which Statement About Contingent Liabilities Is Correct