Contingent Liability

Business, Legal & Accounting Glossary

Definition: Contingent Liability



Full Definition of Contingent Liability


Contingent liabilities are liabilities that may or may not be incurred by a company and which depend on the outcome of a forthcoming event such as a court case. These are recorded in a company’s accounts as contingent liabilities under accounts payable. Such liabilities are not shown in the balance sheet, usually, a footnote is appended at the balance sheet for such liability.


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Page URL
https://payrollheaven.com/define/contingent-liability/
Modern Language Association (MLA):
Contingent Liability. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 27, 2020 https://payrollheaven.com/define/contingent-liability/.
Chicago Manual of Style (CMS):
Contingent Liability. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/contingent-liability/ (accessed: September 27, 2020).
American Psychological Association (APA):
Contingent Liability. PayrollHeaven.com. Retrieved September 27, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/contingent-liability/

Definition Sources


Definitions for Contingent Liability are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 18th April, 2020 | 2 Views.