An estimated liability:
A) Can be the result of a lawsuit.
B) Is a liability that may occur if a future event occurs.
C) Is an unknown liability of a certain amount.
D) Is a known obligation of an uncertain amount.
E) None of these answers is correct.

Question

Quizplus · Accepted Answer

An estimated liability is a known obligation of an uncertain amount, where the exact amount is not known but can be reasonably estimated.

An Estimated Liability