Please Help: ACCOUNTS
Posted Date : 04-Aug-2012 , 06:00:47 pm | Posted By: Avijit
Category :
Accounts | Answers :
2|
Comments :
1| Hits: 224
|
|
WHAT IS CONTINGENT LIABILITY? |
 |
|
|
Answers:
|
 Answer by: Rambabu Senkarasetti |
| Amount of liability is known,but happening of liability is unknown.
|
| Answer by: Surendra Kumar Dash |
| The Possibility of an obligation to pay a certain sums dependent upon future event.
EX- Outstanding lawsuits.
|
|
|
| Comments |
| Posted By : CA Prateek Negi |
09-Aug-2012, 09:43:17 |
| Contingent liabilities are liabilities that may or may not be incurred by an entity depending on the outcome of a future event such as a court case.
Example
if a father guarantees his daughter's car loan then it will be a contingent liability; if his daughter fails to repay her loan than her father will be liable for his guarantee. |
| |
|
|
|
|
