Question

Which of the following is true for provisions vs contingent liabilities?

Q: Answer-Which of the following is true for provisions vs contingent liabilities?

A provision is a liability of uncertain timing or amount that is recognized when an outflow is probable and can be reliably estimated. A contingent liability is a possible obligation that is disclosed unless the possibility of an outflow is remote.

A Provisions are recognised in books when outflow probable and measurable; contingent liabilities are disclosed unless remote

B Provisions are never recognised

C Contingent liabilities are recognised always as liability in balance sheet

D Provisions are part of equity

Practice Next

More Accounts Questions

Which among the following correctly describes Margin of Safety?
The coefficient of correlation takes the value in which of the following ranges?
Investment in debt instrument for which the company has intention to receive contractual cash flows and for which, the debt gives contractual cash flows fo...
In relation to Financial Management, which of the following statements are correct? (i) Financial Management as the name suggests is the management of fin...
Under the Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE), what is the guarantee cover tenure for working capital facilities?
A company has ₹10,00,000 10% Redeemable Preference Shares. These are redeemed at 10% premium out of fresh equity issue of ₹6,00,000 and balance from reserv...
Which of the following income is not an exempted income?
Bank loans to startups are eligible for classification under Priority Sector Lending up to what limit?
What is the maximum term loan sanction permitted for Aadhaar OTP-based e-KYC accounts?
Determining the present value of a future amount in financial sense is known as:

Hey! Ask a query

Which of the following is true for provisions vs contingent liabilities?

Detailed Solution

More Accounts Questions

Hey! Ask a query

Please Register/Login