Accounting · Contingent Liabilities
A contingent liability is disclosed but not recognized as a present liability in the balance sheet mainly because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1it represents surplus available for distribution
- 2it cannot be reported anywhere in financial statements
- 3it depends on the occurrence or non-occurrence of an uncertain future event✓
- 4it is certain to arise and easily measurable
Correct answer
it depends on the occurrence or non-occurrence of an uncertain future event
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