Ans. Contingent liability is a liability that may occur depending on the happening of a future event. Contingent liability is a liability that may occur or may not occur. There is no certainty of its happening. Occurrence of the liability is uncertain as it depends on the happening of an external event, in future, on which the company has no control.
What is a contingent liability?
Ans. Contingent liability is a liability that may occur depending on the happening of a future event. Contingent liability is a liability that may occur or may not occur. There is no certainty of its happening. Occurrence of the liability is uncertain as it depends on the happening of an external event, in future, on which the company has no control.
