Which of the following may be a contingent liability?

(A) Sales tax owed

(B) Accrued interest

(C) Future lawsuits claims

(D) Customer deposits

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.

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