when a contingent event that may give rise to a future loss is likely to occur, it is said to be

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21-10-2021
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when a contingent event that may give rise to a future loss is likely to occur, it is said to be

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ogorwyne ogorwyne · Answer 1 · 2021-10-27T10:54:09+02:00

When a contingent event that may give rise to a future loss is likely to occur, it is said to be contingent liability.

A contingent liability is a possible loss that could arise due to an event in the future. Such losses are regarded as probable losses or could also be said to be reasonably possible losses

Examples of contingent liability that has the probability of happening in the future is a lawsuit or the warranties from a product.

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