Where are the contingent items disclosed in the financial statements?
A)On the assets side of the balance sheet.
B)On the liabilities side of the balance sheet.
C)As footnotes to financial statements.
D)In the income statement.
E)In the director's report.

Question

Quizplus · Accepted Answer

Contingent items, such as potential liabilities or lawsuits, are typically disclosed in footnotes to the financial statements. This allows readers of the financial statements to be aware of potential risks and uncertainties that could affect the company's financial position.

Where Are the Contingent Items Disclosed in the Financial Statements