Current liabilities are classified as either definitely determinable liabilities or estimated liabilities.

Question

Quizplus · Accepted Answer

This statement is true. Current liabilities can be classified as definitely determinable liabilities, which are debts that are owed and have a fixed amount that can be easily determined (such as accounts payable or rent payable), or estimated liabilities, which are debts where the exact amount owed is uncertain and may require estimation (such as warranties or income taxes payable).

Current Liabilities Are Classified as Either Definitely Determinable Liabilities or Estimated