Vidyalelo
Commerce · Q384

Accounting

Graduate and Post Graduate · Commerce · question 384

Q384

Municipal tax Rs.6000 under dispute is a

A.
Contingent liability
Answer
B.
Revenue expenditure
C.
Current liability
D.
Current asset

Answer: Option A

Solution

Answer: Option A
Solution:
Municipal tax Rs.6000 under dispute is a Contingent liability. Contingent liabilities are liabilities that may be incurred by an entity depending on the outcome of an uncertain future event such as the outcome of a pending lawsuit.