Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:
Contingent Liabilities are exhibited under which heading/sub heading as per Schedule III of the Companies Act 2013?
Options:
Fixed Liabilities
Current Liabilities
Non Current Liabilities
Foot Note
Correct Answer:
Foot Note
Explanation:
The principle of full disclosure requires that all material and relevant facts concerning financial performance of an enterprise must be fully and completely disclosed in the financial statements and their accompanying footnotes. Hence, contingent liability is recorded in balance sheet as footnote.