A contingent liability is a potential obligation that depends on a future event arising from a past transaction or event.

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Herson Agustin · Accepted Answer

Final Answer : True, Explanation :  A contingent liability is a potential obligation that may or may not occur depending on the outcome of a future event. It arises from a past transaction or event but its occurrence is uncertain.

A contingent liability is a potential obligation that depends on a future event arising from a past transaction or event.

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