Accenture Senior Tax Analyst Interview Questions and Answers

Contingent liabilities are potential liabilities that may arise in the future depending on the outcome of certain events.

• Contingent liabilities are not recorded on the balance sheet but disclosed in the footnotes.

• They are dependent on a future event occurring or not occurring.

• Examples include lawsuits, warranties, and guarantees.

• If the contingent liability is probable and the amount can be estimated, it should be recor

Provision is an amount set aside in financial statements to cover anticipated future expenses or losses.

• Provision is a liability that is recognized on the balance sheet.

• It is used to account for potential future expenses or losses that are uncertain but likely to occur.

• Examples of provisions include bad debt provisions, warranty provisions, and restructuring provisions.