Question

Give the word term or phrase which can substitute each of the following statements :

Liability which depends on happening or not happening of certain event.

Answer 1

Liability which depends on happening or not happening of certain event- Contingent Liability

Explanation:
Those liabilities that are dependent on the outcome of future events are known as contingent liabilities. These liabilities are not recorded in the books of accounts. They are rather shown as a footnote to the Balance Sheet. For example, outstanding court case, legal liability and product warranty.