A contingent liability eventually becomes either a true liability or no liability at all.

Question

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A contingent liability is a potential obligation that may arise depending on the outcome of a future event. It becomes a true liability if the event occurs and the obligation materializes. If the event does not occur, the contingent liability does not become a liability at all. Therefore, a contingent liability eventually becomes either a true liability or no liability at all.

A Contingent Liability Eventually Becomes Either a True Liability or No