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Why Letter Of Credit Is A Contingent Liability? |
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Answer» CONTINGENT LIABILITIES are those liabilities which are not a LIABILITY today but can become a liability tomorrow. Letter of credit are non fund based advances, which of INVOKED becomes a liability because it becomes a fund based advance. Contingent liabilities are those liabilities which are not a liability today but can become a liability tomorrow. Letter of credit are non fund based advances, which of invoked becomes a liability because it becomes a fund based advance. |
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