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Investments glossary

Contingent Liability


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Quotes of the day:

All that glitters is not gold, and things that look warm are often cold!

— Yassine Aumerally

A contingent liability is a liability that may occur depending on the outcome of an uncertain future event. A contingent liability is recorded if the contingency is likely and the amount of the liability can be reasonably estimated. The liability may be disclosed in a footnote on the financial statements unless both conditions are not met.

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