What is contingent liability?

Answer Posted / mahesh babu

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



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