When Paul Sliz was reviewing existing or possible obligations on the balance sheet, he was told that the outcome for these obligations was uncertain and that the company was awaiting a future event. Paul Sliz was reviewing
A) accruals.
B) going concern.
C) materiality.
D) contingent liabilities.

Question

Quizplus · Accepted Answer

The language "outcome for these obligations was uncertain" and "awaiting a future event" suggests that these obligations are contingent liabilities, meaning they are potential future obligations that will be resolved based on the occurrence or non-occurrence of a future event.

When Paul Sliz Was Reviewing Existing or Possible Obligations on the Balance