Which of the Following Would Best Describe a Contingent Liability

Multiple Choice

Which of the following would best describe a contingent liability?

A) An obligation to transfer services instead of cash to settle a liability.
B) An obligation where the costs will be covered by insurance.
C) An obligation with a high degree of uncertainty about the amount or timing of the payment.
D) An obligation with a low degree of uncertainty about the amount or timing of the payment