Differences Between A Current Liability and A Contingent Liability With Examples
Current Liabilities are debts due that are payable by the business to outsiders within the current Accounting Period. Examples are Accounts Payable / Creditors, Trades Payable, Notes Payable, Outstanding Expenses, Unearned Revenues and any other Current Expenses Payable in the Current Accounting Period. Current Liability is a present obligation a nd certain amount that is payable in the current specified period of time. You may also be interested in International Accounting Standards IAS-1 Contingent Liability It depends upon the happening of a uncertain future event that may or may not happen. It is possible obligations that depends upon future uncertain events that are uncertain and these events may happen or not. Due to such uncertain future event, then this liability will arise and the amount is determined from the past events. ...