Bill discounted from bank is
A. Contingent liability
B. Current liability
C. Current assets
D. None of the above
Answer: Option A
This Question Belongs to Commerce >> Accounting
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Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Contingent liability is the term used to describe an obligation that is payable on a future date that may occur based on the outcome of an uncertain future date. A contingent liability arises if the drawee fails to pay the discounted bills receivable.