A Contingent Liability

Multiple Choice

A contingent liability

A) is a potential liability that depends on a future event arising out of a past transaction.
B) is a liability that can always be calculated with great precision (i.e.,always has a definite amount) .
C) does not include product safety lawsuits.
D) does not include liabilities relating to environmental issues such as toxic landfills.
E) is not of interest to readers of financial statements.