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    Question

    Which of these is considered a contingent

    liability?
    A Unpaid dividend declared Correct Answer Incorrect Answer
    B Pending lawsuit where outflow is probable and amount is estimable Correct Answer Incorrect Answer
    C Guarantee given by the company where outflow is possible but not probable Correct Answer Incorrect Answer
    D Long-term loans payable next year Correct Answer Incorrect Answer
    E Accrued expenses Correct Answer Incorrect Answer

    Solution

    Contingent liabilities disclosed when possible (but not probable) or amount not reliably measurable.

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