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Contingent liability is not shown in balance sheet because the actual occurance or amount of liability is unknown until some specific future time or event that's why it is shown as note in notes to financial statement section.
Wiki User
∙ 10y ago
Wiki User
∙ 15y agoContingent Liability is not shown at the face of balance sheet but shown as a notes to financial statements as a note about the latest information of contingent liability.
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Where contigent liabilites are shown in balance sheet?
Contingent liabilities does not show in balance sheet rather it is provided in notes to financial statements as a note about contingent liability and detail etc.
Where do finance leases go on the balance sheet?
Finance lease is shown as an asset in asset side of balance sheet as well as shown as a liability under long term liability section of balance sheet.
Does dividends go on a balance sheet?
Dividends payable are part of balance sheet as liability and shown under liability side of business.
How is a bond recorded on the balance sheet?
Bond is issued to raise capital which is liability for business and shown under liability section of balance sheet.
Is accounts payable shown on the balance sheet?
Yes, it's listed as a current liability on the balance sheet.
How is treasury bond shown on a balance sheet?
contigent liability
Interest payable found on the balance sheet?
Interest payable is liability for business that's why shown under liability side of balance sheet of business.
Journal entry for contingent liability?
A contingent liability is a potential obligation that may arise in the future, depending on the outcome of a future event. It is documented in the financial statements as a disclosure rather than a recognition in the balance sheet. Contingent liabilities can include pending lawsuits, warranties, or product recalls, and their potential impact on the company's financial position should be clearly outlined in the journal entry.
What element of financial statements interest payable belong?
Interest payable is liability to be cleared in future that's why shown in liability side of balance sheet.
On a balance sheet the accounts pauable and salarys payable would fall under the catergory of?
Accounts payable and salaries payable both are part of current liability of balance sheet and shown there at liability side.
Where does letter of credit comes in balance sheet?
the letter of credit is not shown in the balance sheet, since it's a contingent commitment but it should be disclosed in a separate note
Will unearned revenue be shown both in liabilities and income statement of the year in which we received the income?
Unearned revenue is only shown in the liability side of balance sheet and it is only shown in income statement when it is actually earned until then it will only shown in balance sheet as liability
