Quiz 18

Contingent Assets
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13 MCQs with the right answers
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Q1. Gain from possible merger is an example of contingent asset.*

1 mark

True

False

Q2. Contingent Assets are recorded in the year when they become virtually certain.*

1 mark

False

True

Q3. Contingent Assets are treated like Contingent liabilities.*

1 mark

False

True

Q4. The word 'Contingency' means _____.*

1 mark

possible but not certain

certain

definite

possible and predictable

Q5. Contingent assets should be recorded when they are probable.*

1 mark

False

True

Q6. Which of the following is not an example of contingent assets?*

1 mark

Fictitious Assets

Virtually Certain Lawsuit Win

Closed Deal for Merger

Closed Deal of Acquisition

Q7. Contingent assets are also known as _____.*

1 mark

short-term assets

future assets

potential assets

fictitious assets

Q8. Contingent assets are disclosed in _____.*

1 mark

profit and loss account

notes to accounts

cash flow statement

balance sheet

Q9. Contingent assets are shown in the balance sheet.*

1 mark

True

False

Q10. Which of the following is an example of contingent assets?*

1 mark

Virtually certain loss in lawsuit

Virtually certain new investment

Virtually certain win in lawsuit

Virtually certain win in lottery

Q11. Contingent asset is realized when it becomes _____.*

1 mark

virtually certain

impossible

almost possible

virtually impossible

Q12. Contingent assets depend on a future _____ event.*

1 mark

certain

planned

definite

uncertain

Q13. Contingent asset is a possible _____ dependent on a future uncertain event.*

1 mark

expense

gain

income

loss

Quiz 18 – Contingent Assets

Quiz 18

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