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<a accesskey="3" href="page.php?w=Contingent_liability&amp;p=2">3.Next</a>
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<p>In <a href="page.php?w=accounting">accounting</a>, <b>contingent liabilities</b> are <a href="page.php?w=Liability_%28financial_accounting%29">liabilities</a> that may be incurred by an entity depending on the outcome of an uncertain future event such as the outcome of a pending <a href="page.php?w=lawsuit">lawsuit</a>. These liabilities are not recorded in a company's <a href="page.php?w=Account_%28accountancy%29">accounts</a> and shown in the <a href="page.php?w=balance_sheet">balance sheet</a> when both probable and reasonably estimable as</p><p>
<a accesskey="3" href="page.php?w=Contingent_liability&amp;p=2">3.Next</a>
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