CONTINGENT ASSETS AND LIABILITES

Contingent Assets :- a possible asset arises from past events and their existence will be confirmed by occurrence or nonoccurrence of one or more uncertain future events. For example, a claim that an enterprise is pursuing through legal process, where the outcome is uncertain, is a contingent asset.

Contingent Liabilities :- a possible obligation arising from past events and may arise in future depending on the occurrence or non-occurrence of one or more uncertain future events.

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