Examples of contingent liabilities include
A)lawsuits requesting the company to pay damages for patent liability or product infringement
B)product warranty claims
C)payment of obligations of other parties
D)liabilities for discounted accounts receivable
E)income tax disputes
F)both A and C
G)both B and E
H)both D and E

Question

Quizplus · Accepted Answer

Contingent liabilities are potential liabilities that may occur depending on the outcome of an uncertain future event. Examples include product warranty claims (B) and income tax disputes (E), as these obligations depend on future events such as product failures or the resolution of tax issues.

Examples of Contingent Liabilities Include