Which of the following is the example of contingencies?
A)Compulsory acquisition of part of land of the company by the Government
B)A suit filed by the employee against the company
C)A debtor of the company is declared insolvent, resulting in bad debts to the company
D)All of (a), (b) and (c) above.

Question

Quizplus · Accepted Answer

All of the options provided (A, B, C) are examples of contingencies because they are conditions or situations whose outcome is uncertain but could potentially result in a financial loss or gain for the company. Compulsory acquisition of land, a lawsuit against the company, and a debtor's insolvency are all events that could have financial implications depending on their outcomes, which are uncertain at the time they are recognized.

Which of the Following Is the Example of Contingencies