The correct answer is D. All of the above.
A contingent liability is a potential liability that arises from an existing situation but is not certain to occur. Contingent liabilities are not recorded in the balance sheet, but they must be disclosed in the notes to the financial statements.
The three types of contingent liabilities listed in the question are:
- Claims against the company not acknowledged by as debts: This includes claims that have been made against the company but that the company has not yet admitted liability for.
- Uncalled liability on shares partly paid: This is the amount of money that shareholders have not yet paid for their shares.
- Arrears of fixed cumulative dividends: This is the amount of dividends that have not yet been paid on cumulative preference shares.
All of these types of contingent liabilities must be disclosed in the notes to the financial statements. The disclosure should include the nature of the contingency, the amount of the potential liability, and the likelihood of the liability being realized.
The disclosure of contingent liabilities is important because it allows investors to assess the risks that the company faces. If a company has a large number of contingent liabilities, it may be a sign that the company is facing financial difficulties.