MyQuestionIcon

6

You visited us 6 times! Enjoying our articles? Unlock Full Access!

Profit or Loss Appropriation A/c

If a company ...

Question

If a company has contingent liabilities, they appear in the __________.

A

balance sheet

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

director's report

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

foot note down the balance sheet

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

D

chairman's report

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

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.

Suggest Corrections

thumbs-up

0

Similar questions

Q. Contingent liability appears as a foot note in the balance sheet. This is in accordance with the accounting principle _____________.

Q. Assertion :Contingent Liabilities is included in the total of the liability side of the balance sheet of a company. Reason: Contingent liabilities are those which may or may not arise in future.

Q. Under which conventions of accounting, the contingent liabilities are shown as a footnote or explanatory notes in the balance sheet of a firm:

Q. Contingent liability appears as a footnote in the balance sheet. This is in accordance with the accounting principle of __________.

Q. Contingent liabilities is shown as __________ in Balance Sheet.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Accounting Aspect

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Profit or Loss Appropriation A/c

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon