When is a contingent liability recorded? When the amount car be reasonably estimated. When the future events are probable to occur and the amount can be reasonably estimated. When the future events are probable to occur. When the future events will possibly occur and the amount can be reasonably estimated. Which of the following is not considered a part of the definition of a liability? Unavoidable obligation. Transaction or other event creating the liability has already occurred. Present obligation that entails settlement by probable future transfer or use of cash, goods or services. Liquidation is reasonably expected to require use of existing resources classified as current assets or create other current liabilities. What is a contingency? At existing situation where certainty exists as to a gain or loss that will be resolved when one or more future events occur or fail to occur. An existing situation where uncertainty exists as to possible loss that will be resolved when one or more future events occur. An existing situation where uncertainty exists as to possible gain or loss that will not be resolved in the foreseeable future. An existing situation where uncertainty exists as to possible gain or loss that will be resolved when one or more future events occur or fail to occur