Which of the following is not a contingent liability?
A) Environmental cleanup costs
B) Lawsuits
C) Discount on notes payable
D) Credit guarantees
E) All of these are contingent liabilities

Question

Quizplus · Accepted Answer

Contingent liabilities are potential liabilities that may occur depending on the outcome of a future event. Environmental cleanup costs, lawsuits, and credit guarantees are all examples of contingent liabilities because they depend on the outcome of uncertain future events. However, a discount on notes payable is not a contingent liability; it is a financial accounting term that represents the difference between the face value of a note and the cash received (or receivable), and it is amortized over the life of the note.

Which of the Following Is Not a Contingent Liability