Asked by Patrick Pedersen on Jun 27, 2024
Verified
Obligations that may arise from past transactions only if certain events occur in the future are contingent liabilities.
Contingent Liabilities
Liabilities that may arise from past transactions if certain events occur in the future.
Past Transactions
Historical financial activities that have occurred and been recorded within a business.
- Understand and identify contingent liabilities.
Verified Answer
ZK
Zybrea KnightJul 02, 2024
Final Answer :
True
Explanation :
Contingent liabilities are potential obligations that may arise from past transactions or events only if certain conditions or events occur in the future. Therefore, the statement is true.
Learning Objectives
- Understand and identify contingent liabilities.