Which of the following may be a contingent liability?

Sales tax owed

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Accrued interest

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Future lawsuits claims

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Customer deposits

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Solution

The correct option is C
Future lawsuits claims

Answer (C): Future lawsuits claims
Explanation: A future lawsuit is a contingent liability 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.
Also see:
Contingent Liabilities
Commerce MCQs

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