Potential liabilities that depend on future events arising out of past events are called:
A)long-term liabilities.
B)estimated liabilities.
C)contingent liabilities.
D)current liabilities.

Question

Quizplus · Accepted Answer

Contingent liabilities are potential liabilities that may arise depending on the occurrence or non-occurrence of future events. These may include legal claims, warranties, environmental remediation costs, or other uncertain obligations that may arise out of past events but whose outcome is uncertain. These liabilities are only recognized in the financial statements if their occurrence is considered probable and reasonably estimable.

Potential Liabilities That Depend on Future Events Arising Out of Past