False: A claim that an enterprise is pursuing through legal process, where the
outcome is uncertain, is a contingent asset.

True

Contingent liability refers to a potential liability that may arise depending on the outcome of a future event that is uncertain. In this case, a claim that an enterprise is pursuing through a legal process where the outcome is uncertain qualifies as a contingent liability.

Explanation:

There are several situations where an enterprise may have a contingent liability, and one of them is when it is involved in a legal dispute. In such a case, the outcome of the legal process is uncertain, and the enterprise may either win or lose the case. If the enterprise loses the case, it will be liable to pay damages, fines, or penalties, and this will have a negative impact on its financial position.

However, if the enterprise wins the case, it will not have any liability, and it will be able to recover any expenses incurred during the legal process. Until the outcome of the legal process is known, the enterprise cannot determine the exact amount of liability that it may have to bear. Therefore, the claim is considered a contingent liability until the outcome is known.

In conclusion, a claim that an enterprise is pursuing through legal process where the outcome is uncertain is a contingent liability.