New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following is not considered as a Current

    Liability?
    A Interest outstanding on Debentures Correct Answer Incorrect Answer
    B Contingent Liability Correct Answer Incorrect Answer
    C Bills Payable Correct Answer Incorrect Answer
    D Trade Creditors Correct Answer Incorrect Answer

    Solution

    Contingent liabilities are potential obligations that may arise depending on the outcome of future events. They are not actual liabilities until a certain event occurs, and their recognition depends on the probability of the event happening. Contingent liabilities are disclosed in the financial statements but are not recognized as current liabilities.

    Practice Next