Multiple choice

Contingent liabilities are to be shown inside the balance sheet.

  1. True

  2. False

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Explanation: Balance Sheet show the true and fair view of the statement of liabilities and assets as on a given date. Any liability which may arise on the happening of an event or contingent upon something is not a liability on that date. Hence the contingent liability is not to be shown inside the balance sheet.