Question

A contingent liabilityA. definitely exists as a liability but its amount and due date are indeterminable. B. is accrued even though not reasonably estimated. C. is not disclosed in the financial statements. D. is the result of a loss contingency.

Answer 1

D. is the result of a loss contingency.

Step-by-step explanation:

The contingent liability is the liability which is arise but its result is uncertain. It is reported on the financial statements when the amount and the liability could be approximate or estimated

We could also term as a loss that depend upon the event held in the future.

Example: warranties of product, law suits, etc