Question

Contingent Liabilities must have the following criteria (select all that apply): Select one or more: A. The obligation is certain to require payment at some point in the future. B. The obligation will probably require payment at some point in the future. C. The obligation is estimable. D. The obligation will possibly require payment at some point in the future. E. None of the above

Answer 1

Answer: Option B and C

Explanation: In simple words , contingent liabilities refers to the liabilities the occurrence of which depends on the happening of an event that may or may not occur in the future.

These are recorded in the accounts only when the payment is to be made in future and that payment could be reasonably estimated.

Hence the correct option is B and C