A Contingent Liability Is Defined as A A) I
B) II

A contingent liability is defined as a: $\begin{array}{|l|l|l|l|l|} \hline& \text { I } & \text { II } & \text { III } & \text { IV } \\\hline \text { possible obligation that arises from past events. } & \text { Yes } & \text { Yes } & \text { No } & \text { No } \\\hline \begin{array}{l}\text { possible obligation whose existence will be confirmed } \\\text { by the occurrence of an uncertain future event. }\end{array} & \text { Yes } & \text { No } & \text { Yes } & \text { No } \\\hline \begin{array}{l}\text { present obligation not recognised because the outflow } \\\text { of economicbenefits to settle the obligation is not } \\\text { probable. }\end{array} & \text { Yes } & \text { No } & \text { Yes } & \text { No } \\\hline \text { present obligation that is measured reliably. } & \text { No } & \text { No } & \text { Yes } & \text { Yes }\\\hline\end{array}$

A) I.
B) II.
C) III.
D) IV.

Correct Answer:

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