๐Ÿ“ข Too many exams? Donโ€™t know which one suits you best? Book Your Free Expert ๐Ÿ‘‰ call Now!

  • google app store apple app store
  • โœ–

      Question

      Contingent Liabilities are shown in

      the:
      A Liability side of the Balance Sheet. Correct Answer Incorrect Answer
      B Asset side of the Balance Sheet. Correct Answer Incorrect Answer
      C Notes to Accounts. Correct Answer Incorrect Answer
      D Profit & Loss Account. Correct Answer Incorrect Answer
      E Trading Account. Correct Answer Incorrect Answer

      Solution

      As per the principle of full disclosure, potential liabilities that depend on a future event (like a pending lawsuit) are disclosed in notes, not the main balance sheet.

      Practice Next
      ask-question