Contingent liabilities should be recorded in the accounts when ________________.
It is probable that the future event will occur
Either A or B
The amount of the liability can be reasonably estimated
Both A and B

Question

Contingent liabilities should be recorded in the accounts when -It is probable that the future event will occurEither A or BThe amount of the liability can be reasonably estimatedBoth A and B

Toppr Admin · Accepted Answer

The correct option is C Both A and BContingent liability is an estimated liability which may arise due to a future event or incident- The contingent liability to be shown in the notes to account- It should be recorded only when it is based on a probable future event and the amount can reasonably estimated-

Contingent liabilities should be recorded in the accounts when ________________.It is probable that the future event will occurEither A or BThe amount of the liability can be reasonably estimatedBoth A and B

Contingent liabilities should be recorded in the accounts when ________________.
It is probable that the future event will occur
Either A or B
The amount of the liability can be reasonably estimated
Both A and B