A Basic Difference Between Loss Contingencies and "Real" Liabilities Is

Multiple Choice

A basic difference between loss contingencies and "real" liabilities is:

A) Liabilities stem from past transactions; loss contingencies stem from future events.
B) Liabilities always are recorded in the accounting records, whereas loss contingencies never are.
C) The extent of uncertainty involved.
D) Liabilities can be large in amount, whereas loss contingencies are immaterial.