Final answer:
Option A, cosigned loans on behalf of some corporate executives, is a contingent liability that must be disclosed because the company may have to pay if the primary borrower defaults.
Step-by-step explanation:
A contingent liability is a potential liability that may occur depending on the outcome of an uncertain future event. The requirement for disclosure of such liabilities is to ensure that the financial statements present a complete picture of a company's financial health.
Among the options provided:
- A. cosigned loans on behalf of some corporate executives
- B. remote gains on investments made without a guarantee
- C. securities purchased from a broker under SEC investigation
- D. accounts payable to a vendor contemplating bankruptcy
Option A, cosigned loans on behalf of some corporate executives, meets the criteria for a contingent liability that must be disclosed. This is because the company may be required to fulfill the obligation if the primary borrower defaults. Option B is not a liability, but rather an uncertain gain. Option C is not a current obligation but may impart some risk to the company. Option D is a current liability, not a contingent one, which would typically already be disclosed on the financial statements as such.