Question

‘Claims against the company not acknowledged as debts’ is shown under the head ______.

Options

• Current Liabilities

• Non-Current Liabilities

• Commitments

• Contingent Liabilities

Answer 1

‘Claims against the company not acknowledged as debts’ is shown under the head contingent liabilities.

Explanation:

“Claims against the company not acknowledged as debts” refer to potential obligations (like disputed legal claims) that:

• May or may not become actual liabilities, depending on the outcome of future events (e.g. court cases).
• Are not recorded in the books as actual liabilities because they are uncertain.