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 Cannonbar,a grocery store chain?

A) A patron slipped on a grape and broke her neck during the period under audit,no claim has been made against Cannonbar.
B) The IRS has disagreed with deductions claimed on Cannonbar's previous period return.
C) Management believes that a lawsuit that was filed during the period under audit against Cannonbar will be settled.
D) Cannonbar has a note payable with a bank that was collateralized by all of the company's receivables in the period under audit.