Ans. Uncertain Liability is also known as a contingent liability, which is a liability that occurs depending on the result of a future event, which is typically uncertain. This contingent liability is recorded if the contingency is likely to happen and the amount of the liability can be reasonably estimated before-hand.A contingent liability is a type of liability or normally calculated as a potential loss that might occur in the coming future. Potential lawsuits, product warranties, and other pending investigations are few examples of contingent liability.All qualifying contingent liabilities are recorded as an expense on the income statement and as a liability on the balance sheet. If the contingent loss is too remote, which means it has less than a 50% chance of occurring, then the liability should not be presented on the balance sheet.