Three Conditions Are Required for a Contingent Liability to Exist

Multiple Choice

Three conditions are required for a contingent liability to exist. Which of the following is not one of those conditions?

A) There is a potential future payment to an outside party or the impairment of an asset that resulted from an existing condition.
B) The outcome must be resolved by a third-party.
C) There is uncertainty about the amount of the future payment or impairment.
D) The outcome will be resolved by some future event or events.