Contingent Assets and Contingent Liabilities Quiz 1 – Punjab Meritorious School Preparation Portal

Welcome to your 29th July Contingent Assets and Contingent Liabilities Quiz 1 CBT TEST

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Name

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School Name with City

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Contingent asset usually arises from unplanned or unexpected events that give rise to

The possibility of an inflow of economic benefits to the business entity.

The possibility of an outflow of economic benefits to the business entity.

Either (a) or (b).

None of the above

In the financial statements, contingent liability is

Recognised

Not recognised.

Adjusted.

None of the above

Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation is termed as

Provision

Liability

Contingent liability

None of the above

If an inflow of economic benefits is probable then a contingent asset is disclosed

In the financial statements.

In the report of the approving authority (Board of Directors in the case of a company, and the corresponding approving authority in the case of any other enterprise).

In the cash flow statement.

None of the above

In the case of__, either outflow of resources to settle the obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability.

Liability

Provision

Contingent liabilities

None of the above

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