INTERVIEW QUESTIONS ACCOUNTING PROCESS CONTINGENT ASSETS AND CONTINGENT LIABILITIES DETAILS

Question: Provision for contingencies are not made in respect of _________ since they do not relate to situation existing at the balance sheet date: a) Unspecified business risk b) Certain business risk c) Specified business risk d) Uncertain business risk

Answer: (a) Unspecified business risk
Description: Provision means any amount written off or retained by way of providing for depreciation, renewal or diminution in the value of assets or retained by way of providing for any known liability of which the amount cannot be determined with substantial accuracy. It is to be observed that provisions are provided for a known risk but not for unspecified business risk. It deals with estimation of amount and not the estimation of liability.

(a) Unspecified business risk
Description: Provision means any amount written off or retained by way of providing for depreciation, renewal or diminution in the value of assets or retained by way of providing for any known liability of which the amount cannot be determined with substantial accuracy. It is to be observed that provisions are provided for a known risk but not for unspecified business risk. It deals with estimation of amount and not the estimation of liability. Source: CoolInterview.com

If you have the better answer, then send it to us. We will display your answer after the approval.

Rules to Post Answers in CoolInterview.com:-

• There should not be any Spelling Mistakes.
• There should not be any Gramatical Errors.
• Answers must not contain any bad words.
• Answers should not be the repeat of same answer, already approved.
• Answer should be complete in itself.

Name :*
Email Id :*
Answer :*
Verification Code	Not readable? Load New Code
Enter the above shown code: *
	Inform me about updated answers to this question