Please Help: ACCOUNTS
Posted Date : 04-Aug-2012 , 06:00:47 pm | Posted By avijit
WHAT IS CONTINGENT LIABILITY?
Category : Accounts | Answers : 2 | Comments : 1 | Hits : 189
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.
EX- Outstanding lawsuits.
Comments
CA Prateek Negi
09-Aug-2012 , 09:43:17 pmContingent 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.