Explain the difference between a contingent liability and a liability. How do contingent liabilities affect a companys

Question:

Explain the difference between a contingent liability and a liability. How do affect a company’s statement of financial position and statement of income?
Contingent liabilities
A contingent liability is an obligation of business related to an uncertain future event. The business must record it in its financial statements if the amount can be reliably estimated and it is probable that amount will be paid by business as a...