Discussion
Which one of the following is not a contingent liability ?
Answer: B
The one that is not a contingent liability is underwriting commission payable.
A contingent liability depends on a future event that may or may not happen. Underwriting commission payable is an amount the company already owes for a service received, so it is an actual liability.
A discounted bill becomes a liability only if the drawee fails to pay at maturity (A); arrears of cumulative preference dividend become payable only when dividend is declared (C); and uncalled capital on partly paid investments is payable only if the company calls it (D). All three are contingent.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development