Final answer:
Warranties, potential legal claims, and debt guarantees are reasonably possible contingent liabilities that a company may face.
option a is the correct
Step-by-step explanation:
The reasonably possible contingent liabilities in this scenario are warranties, potential legal claims, and debt guarantees.
Warranties represent promises made by a company to repair or replace a product if it fails to perform as expected within a specified period. In case the warranties are not honored, the company may face potential liabilities.
Potential legal claims refer to situations where a company might face legal action, which could result in financial loss if found liable. These claims could arise due to product defects, accidents, or breaches of contract.
Debt guarantees are commitments made by a company to repay the debt of another entity if they default. If the guaranteed party fails to repay its debts, the company providing the guarantee may be held responsible for fulfilling the financial obligation.