Post Utme Ui 2020 Commerce Question 26

Practice objective / multiple choice question 26 from the 2020 Post Utme Ui Commerce examination.

Post Utme Ui 2020 Commerce Objective / Multiple Choice
Question 26 POST_UTME_UI • 2020 • COMMERCE • objective

A company's financial statement shows a net income of ₦1,500,000, but the auditor notes that the company has a contingent liability of ₦2,000,000. What is the correct accounting treatment for this contingent liability?

Answer Options

A. Recognize the contingent liability as a current liability
B. Recognize the contingent liability as a non-current liability
Correct Answer C. Do not recognize the contingent liability
D. Recognize the contingent liability as a gain
Correct Answer
C
Correct Option:
Do not recognize the contingent liability

About This Question

This is Post Utme Ui 2020 Commerce Question 26. It is one of the objective questions from the 2020 Post Utme Ui Commerce examination.

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