Which of the following is NOT an example of a contingent liability?
A) income tax disputes
B) writing off a bad debt
C) product warranties
D) pending legal action for patent infringement, product liability, or other actions

Question

Quizplus · Accepted Answer

Writing off a bad debt is not a contingent liability as it is a recognized loss and is not dependent on any uncertain future events. The other options are examples of contingent liabilities as they are dependent on uncertain future events and may or may not result in an actual liability.

Which of the Following Is NOT an Example of a Contingent