Which One of the Following Items Would Be Most Likely

Multiple Choice

Which one of the following items would be most likely considered a contingent liability for Foodchain Ltd, a supermarket chain?

A) a patron slipped on a grape and broke her neck during the period under audit; no claim has been made against Foodchain
B) The Australian Taxation Office (ATO) has disagreed with deductions claimed on Foodchain's previous period return
C) management believes that a lawsuit that was filed during the period under audit against Foodchain will be settled
D) Foodchain has a note payable with a bank that was collateralised by all of the company's receivables in the period under audit