If a company has contingent liabilities, they appear in the __________.
A
balance sheet
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B
director's report
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C
foot note down the balance sheet
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D
chairman's report
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Solution
The correct option is C foot note down the balance sheet Contingent liability is that amount of financial obligation which may arise in future due to an incident. Contingent liability is shown in notes to account only when this can be measured to a reasonable extent in monetary value and based on future event. It is shown as foot note to the balance sheet.