The correct answer is B. Contingent liability.
A current liability is a debt or obligation that a company expects to pay within one year. Examples of current liabilities include accounts payable, notes payable, and accrued expenses.
A contingent liability is a potential liability that may arise from a past event but is not certain to occur. Examples of contingent liabilities include lawsuits, guarantees, and environmental remediation costs.
Bills payable are short-term debts that a company owes to its suppliers. Trade creditors are companies that have sold goods or services to a company and have not yet been paid. Interest outstanding on debentures is the interest that has accrued on a company’s debentures but has not yet been paid.
Of the above options, only contingent liability is not a current liability.