What Are Contingent Liabilities?

1.	What Are Contingent Liabilities?
Answer» These are liabilities, which materialize on the HAPPENING or non-happening of an EVENT. Contingent liabilities are not real liabilities and as such do not appear in the liability SIDE of BALANCE sheet. But are disclosed by way of a note in the balance sheet. These are liabilities, which materialize on the happening or non-happening of an event. Contingent liabilities are not real liabilities and as such do not appear in the liability side of balance sheet. But are disclosed by way of a note in the balance sheet.

Answer»

These are liabilities, which materialize on the HAPPENING or non-happening of an EVENT.
Contingent liabilities are not real liabilities and as such do not appear in the liability SIDE of BALANCE sheet. But are disclosed by way of a note in the balance sheet.

These are liabilities, which materialize on the happening or non-happening of an event.
Contingent liabilities are not real liabilities and as such do not appear in the liability side of balance sheet. But are disclosed by way of a note in the balance sheet.

Discussion

No Comment Found

Related InterviewSolutions

What Is Sec 72a Of Income Tax Act?
What Is The Entry For Deferred Tax Liability According To As22?
Define Fifo And Lifo. Explain What Effects That Fifo And Lifo Have On The Balance Sheet During A Period Of Rising Prices And During A Period Of Falling Prices?
Please Tell How You Can Analyze A Balance Sheet Vis-à-vis The Performance Of The Company In The Capital Market? Give Examples With Reference To Some Specific Parameters?
What Do You Understand By Contract Account ?
What Is Depreciation? List Few Methods Of Providing Depreciation?
What Are Contingent Liabilities?
What Is Deferred Revenue Expenditure?
What Is Debenture Redemption Reserve?
Can You Provide Us A Suitable Definition Of Goodwill?