Question

Claims against the company not acknowledged as debt is shown as ______.

Options

• Capital Commitments.

• Non-current Liabilities.

• Current Liabilities.

• Contingent Liabilities.

Answer 1

Claims against the company not acknowledged as debt is shown as contingent liabilities.

Explanation:

Claims against the company not acknowledged as debt are potential liabilities that the company disputes and has not accepted as a real debt (e.g., a pending court case or a disputed tax notice). Since their existence depends entirely on a future court ruling or event, they are not recorded inside the main balance sheet. Instead, they are shown as Contingent Liabilities in the Notes to Accounts at the bottom.