Question

What are Contingent Liabilities? Explain with examples.

Answer 1

those liabilities which are dependent on a future event are known as contingent liabilities
for ex pending lawsuit on a company
company may loss the case or may also win it



They are shown in notes to account in financial statements

Answer 2

A contingent liability is a liability or a potential loss that may occur in the future depending on the outcome of a specific event. Potential lawsuits, product warranties, and pending investigation are some examples of contingent liability.