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Contingent Liability is a potential obligation that is uncertain and depends on the outcome of a future event. The practical examples of contingent liabilities are lawsuits against organization, warranties of products, and guarantees given by the organization.
Its disclosure is requires two conditions "probability" and "estimation of amount". A disclosure is required in financial statement and notes to the account if any one of condition is fulfilled.
Liabilities are the due balances on the entity. Liabilities are reported in the balance sheet
