Which of the following is not a contingent liability?
A)Claims against the company not acknowledged as debts
B)Debts included on debtors which are doubtful in nature
C)Uncalled liability on partly paid shares
D)Arrears of cumulative fixed dividends

Question

Quizplus · Accepted Answer

Debts included on debtors which are doubtful in nature are not considered contingent liabilities because they are recognized as bad debts or allowances for doubtful accounts in financial statements, rather than being contingent on the outcome of a future event.

Which of the Following Is Not a Contingent Liability