Question

Contingent liabilities are shown ________.

• A. By way of note to balance sheet
• B. In current liability
• C. In non-current liability
• D. In profit and loss A/c

Answer 1

The correct option is A By way of note to balance sheet

A contingent liability are shown by way of a note to balance sheet. Contingent liability are the liabilities which may or may not arise in the near future, its shown as a foot note because of the full disclosure convention.