Which of the following is not a contingent liability?

Question

Quizplus · Accepted Answer

Debts included in Sundry Debtors which are doubtful in nature are not considered contingent liabilities. Instead, they are recognized as potential losses and are accounted for in the financial statements through the creation of a provision for bad and doubtful debts, reflecting the expected amount of debts that may not be recoverable. Contingent liabilities, on the other hand, are potential obligations that may arise depending on the outcome of a future event, such as uncalled liability on partly paid shares, claims against the company not acknowledged as debts, and arrears of fixed cumulative dividend.

Which of the Following Is Not a Contingent Liability