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Categories >> Accounting >> Accounting AllOther
 
 


 

 
 Audit interview questions  Audit Interview Questions (428)
 CompanyAffairs CS interview questions  CompanyAffairs CS Interview Questions (158)
 Taxation interview questions  Taxation Interview Questions (1903)
 Accounting General interview questions  Accounting General Interview Questions (2825)
 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4368)
Question
What is contingent liability?
 Question Submitted By :: Accounting-AllOther
I also faced this Question!!     Answer Posted By  
 
Answer
# 1
a contingent iability is a liability which may or may not
arise in the future depending on the happening or non
happening of an event.
 
Is This Answer Correct ?    162 Yes 5 No
Manas Jose
 
Answer
# 2
Contingent liabilities are liabilities that may or may not
be incurred by an entity depending on the outcome of a
future event such as a court case. These liabilities are
recorded in a company's accounts and shown in the balance
sheet when both probable and reasonably estimable. A
footnote to the balance sheet describes the nature and
extent of the contingent liabilities. The likelihood of
loss is described as probable, reasonably possible, or
remote. The ability to estimate a loss is described as
known, reasonably estimable, or not reasonably estimable.
 
Is This Answer Correct ?    59 Yes 10 No
Pravin Kale
 
 
 
Answer
# 3
Liability which is difficult to quantify, or which may or
may not come to pass, such as an outstanding lawsuit.
 
Is This Answer Correct ?    44 Yes 25 No
Anandsurya
 
Answer
# 4
A contingent iability is a liability which may or may not
arise in the future depending on the happening or non
happening of an event.This contingent liability we not
consider in Balance sheet because may be some times it will
be happening or may not be happening.We will make a one
note for contingfent liabilities in audit file.
 
Is This Answer Correct ?    22 Yes 5 No
Mahesh Babu
 
Answer
# 5
a) A possible obligation that arises from past events and
the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the
enterprise; or
b)A present obligation that arises from past events but is
not recognised because:
(i)it is not probable that an outflow of resources
embodying economic benefits will be required to settle the
obligation; or
(ii) a reliable estimate of the amount of the
obligation cannot be made.


Possible obligation - an obligation is a possible
obligation if, based on the evidence available, its
existence at the balance sheet date is considered not
probable.

Present obligation - an obligation is a present obligation
if, based on the evidence available, its existence at the
balance sheet date is considered probable, i.e., more
likely than not.
 
Is This Answer Correct ?    18 Yes 1 No
Sivadas
 
Answer
# 6
These are the not real liability, future events can only
decide weather it is a really a liability or not, due to
their uncertainity.These liabilities are termed as
contingent liabilities.Example:Bill Discounting.
 
Is This Answer Correct ?    14 Yes 7 No
Spsiva.mba
 
Answer
# 7
contingent liability is a liability which may or may not
arise in the future.Actually it is not shown in the
balancesheet.It is shown in the notes on accounts or
explanatory notes.
 
Is This Answer Correct ?    12 Yes 5 No
Rama Devi
 
Answer
# 8
A potential expense, one that may or may not eventuate,
depending how events turn out, but which should be provided
for in properly kept accounts or budgets. Examples of a
company's contingent liabilities might include damages from
a pending lawsuit against the company; guarantees given to
secure another company's borrowings; or having the
company's name as endorser on a bill of exchange that is
yet to mature
 
Is This Answer Correct ?    5 Yes 0 No
Shekhar
 
Answer
# 9
These are not the real liabilities future events can only
decide weather it is a liability or not due to their
uncertainity these liabilities are called contingent
liability. ex: Bill Discounting.
 
Is This Answer Correct ?    6 Yes 2 No
Spsiva.mba
 
Answer
# 10
contingent liabilities are not the real liabilities. The happening and non happening of these liabilities are only decided by the future happening
ex- Bill Discounting.
 
Is This Answer Correct ?    3 Yes 0 No
Reena, Mba
 

 
 
 
Other Accounting AllOther Interview Questions
 
  Question Asked @ Answers
 
Expand---------TRSP   1
whatisthe internal audit? and exteranal audit? Capital-IQ 3
Expand--------MDC   1
what is bank pass book statement   2
what are the golden rules of accounting?   4
What is Inventory Control? Lanco 2
Please anybody explain me debit note & credit note & their importance in accounts?   5
In FY2010-11, if person get salary 189600.00 after deduction of Profession tax and his investment 11000/- in LIC for whole year how many TDS deduct from his salary Pls reply i am waiting for Answer. ICICI 5
How many types of banking accounts? tell me about that Bank-of-Baroda 20
A PARTNERSHIP FIRM HAVE TAKEN LOAN FORM BANK THEN WHAT IS THE ENTRY OF LOAN IN FIRMS ACCOUNT .   8
What is Standard Cost? Cap-Gemini 6
expand W C T   2
 
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