Which of the following most likely is an estimated liability?
A) Incomes taxes payable
B) Payroll liabilities
C) Sales tax payable
D) Current portion of long-term debt

Question

Quizplus · Accepted Answer

Income taxes payable is a liability that represents the estimated amount of income taxes that a company owes but hasn't yet paid to the government. Since it is an estimate of the amount owed, it is considered an estimated liability. The other options,  payroll liabilities, sales tax payable, and current portion of long-term debt, represent known or definite liabilities.

Which of the Following Most Likely Is an Estimated Liability