Homework Answers
ANSWER ::- FALSE
Contingent liability is a loss to the company ,when it is become certain but the amount cannot be estimated that means the amount cannot be recorded in company's accounts or reported as liability in balance sheet .Instead ,the company should disclosed in notes to financial statements.
In the given statement it's given that the contingent liability need not be disclosed so the statement is false.
Contingent liability is remote is nothing to do with disclosure in the financial statements i.e., it doesn't relieve the company from disclosing the contingent liability . Therefore company has to disclose the contingent .
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question Please and Thank you.
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