Question

Contingent liability is shown below the balance sheet on the basis of:
1 point
Materiality Principle
Going Concern Assumption
Full Disclosure Principle
Matching Concept​

Answer 1

A contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event. A contingent liability is recorded in the accounting records if the contingency is probable estimated. 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.

Answered By

hope it helps u

20thnx=30thnx

Mark as brainiest

follow me so that I will follow u back