NOTES


CA-Foundation > Principles and Practice of Accounting > Theoretical Framework -Capital & Revenue Expenditures & Receipts and Contingent Assets and Liabilities (Old & New)

Liability and Contingent liability.



Ans.
A liability is defined as the present financial obligation of an enterprise, which arises from past events.On the other hand, in the case of contingent liability, 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.

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Notes of Theoretical Framework -Capital & Revenue Expenditures & Receipts and Contingent Assets and Liabilities (Old & New)



  1. Provision and Contingent Liability.
    see in detail

  2. Liability and Contingent liability.
    see in detail


CA-Foundation - Principles and Practice of Accounting:

CA-Foundation: