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    Question

    A contingent asset

    is:
    A Recognised in the statement of financial position always Correct Answer Incorrect Answer
    B Not recognised but disclosed where inflow is probable Correct Answer Incorrect Answer
    C Treated same as contingent liability Correct Answer Incorrect Answer
    D Immediately recognised as revenue when identified Correct Answer Incorrect Answer
    E Recognised as deferred tax asset Correct Answer Incorrect Answer

    Solution

    Contingent assets are not recognised; disclosed where inflow is probable.

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