A Contingent Liability Is One for Which

Multiple Choice

A contingent liability is one for which:

A) the liability definition is not satisfied, as there is not a present obligation due to the existence of a contingency the outcome of which is not wholly within the company's control
B) the company does not presently have sufficient liquid resources to discharge
C) the liability definition is satisfied but not the liability recognition criteria.
D) Both A and C but not B