Which of the following are categories of contingent liabilities?
A) Remote
B) Reasonably possible
C) Probable, and the amount can be reasonably estimated
D) All of the above are categories of contingent liabilities

Question

Quizplus · Accepted Answer

Contingent liabilities are potential liabilities that may occur depending on the outcome of a future event. They are categorized based on their likelihood: remote, reasonably possible, and probable (where the amount can also be reasonably estimated). These categories help in determining how they should be reported in financial statements.

Which of the Following Are Categories of Contingent Liabilities