Asked Feb 15, 2020

Chapter 10, Question 16: What are contingent liabilities? List three examples of contingent liabilities. When should contingent li-abilities be recorded in the accounts?


Expert Answer

Step 1

Contingent liabilities are the liabilities which will arise on the happening or not unhappening of future uncertain events.


Step 2

Example of contingent liabilities include

a) loss which might arise out of pending lawsuit


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