Multiple choice

Which of the following is not a contingent liability?

  1. Bill discounted and dishonoured

  2. Bill discounted but not matured

  3. Uncalled liability on partly paid up shares

  4. Claims against business pending in the court

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

Since the bill has been dishonoured, so it is a definite liability. Contigent liabilities are those which may or may not arise in the future. All the others mentioned above are contigent in nature.