Multiple choice

According to which convention of accounting, the contingent liability should be shown as a footnote of balance sheet?

  1. Convention of conservatism

  2. Convention of consistency

  3. Convention of disclosure

  4. Convention of materiality
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Though the contingent liabilities are not due yet but these should appear as a footnote to ensure better disclosure and transparency to outsiders.

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