Answer / ankit dabda

Contingent event may be happened or may not be happened in future bu company has to make provision for it because it support the principle of accrual accounting, where a company has to include all its future losses and neglect any expected future profit. This entry does not include in balance sheet but has to show in annual report.

Answer / nupur jain

A contingent event is a future event which is epected to
happen. Generally it is a conservative way of thought. An
event which might happen in future and that might be the cause
of a irregular and non-recurring expense for the company

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