Question

Contingent Liability is _____________________.

• A. An ascertained liability but its amount and due date are interminate
• B. An ascertained liability but its amount and due date are determinate.
• C. An unascertained liability but its amount and due date are determinate
• D. An unascertained liability but its amount and due date are indeterminate.

Answer 1

The correct option is D An unascertained liability but its amount and due date are indeterminate.

Contingent liability is a unascertained liability but its amount and due date and indeterminate. The occurrence or non occurrence along with the amount of liability that might arise is not certain.