Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation is termed as contingent liability.
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Theoretical FrameworkQ-1 | Contingent Assets and Contingent LiabilitiesQuestion 4972 of 110
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Detailed Solution & Explanation
False: Present liability of uncertain amount, which can be measured reliably by using a
substantial degree of estimation is termed as provision.
About This Chapter: Theoretical Framework
Paper
Paper 1: Accounting
Weightage
5-10%
Key Topics
Policies, Standards (Ind AS), Vocabulary
This chapter covers Policies, Standards (Ind AS), Vocabulary and is part of Paper 1: Accounting in the CA Foundation exam.
View Official ICAI SyllabusExam Strategy Tip
This topic carries 5-10% weightage. Focus on understanding core concepts rather than memorizing.
Key Concepts to Understand
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