Which of the following is not true of contingent liabilities?

(A) The result from a past transaction or promise

(B) lawsuits and loan guarantees are an example

(C) They occur in the present

(D) They result in some other event that takes place

Answer (C): They occur in the present

Explanation: A contingent liability is a liability or responsibility that might happen contingent upon the result of a dubious future occasion. An unforeseen obligation is recorded if the possibility is logical and the measure of the risk can be sensibly assessed.

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