Which of the following is a 'Contingent Asset'? MCQ with Answer and Explanation

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Which of the following is a 'Contingent Asset'?

A. A current asset

B. A provision

C. An asset recognized in balance sheet

D. A potential asset that arises from past events and whose existence will be confirmed by future events not wholly under the entity's control

Answer: Option D

Solution (By JKSSB Mock Tests)

Contingent asset is not recognized but disclosed if probable.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The 'Basic Customs Duty' is levied under:

A. Finance Act

B. Customs Tariff Act, 1975

C. GST Act

D. Income Tax Act

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Correct Answer: Option B

Explanation:
Basic customs duty is imposed under Customs Tariff Act.

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Question #2

Under GST, the term 'mixed supply' refers to:

A. Supply of exempt and taxable items together

B. Supply of capital goods only

C. Supply of goods and services for a single price

D. Two or more individual supplies made together for a single price

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Correct Answer: Option D

Explanation:
Mixed supply means two or more individual supplies of goods or services made in conjunction for a single price, where each item can be supplied separately.

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Question #3

A trial balance shows equal totals but still contains an error of ₹2,000 where purchase of stationery was debited to furniture account. This is:

A. Error of commission

B. Compensating error

C. Error of omission

D. Error of principle

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Correct Answer: Option D

Explanation:
Stationery is revenue expenditure, furniture is asset. Treating revenue as capital is error of principle.

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