Discussion
Which is not the example of current liabilities ?
Answer: B
The item that is not a current liability is contingent liabilities.
A contingent liability is a possible obligation that depends on an uncertain future event, such as a guarantee given for a loan or a claim being disputed in court. Because it is not yet an actual liability, it is not included among the liabilities in the balance sheet and is disclosed by a note instead.
The others are actual obligations payable within a year. Advances from customers must be met by supplying goods or refunding, a bank overdraft is repayable on demand, and provident fund dues owed to the authorities must be paid shortly.
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