The assets which come into existence upon the happening of a certain event are called__________?
Correct answer: A. Contingent assets
- A. Contingent assets
- B. Fixed assets
- C. Fictitious assets
- D. Quick assetsCompare Credit Cards
Explanation
A contingent asset arises only if a specified uncertain future event occurs, such as a possible insurance claim. A fixed or quick asset already exists and is classified by its use or liquidity.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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