Estimated liabilities are ________.
A)obligations of an exact amount
B)obligations of an uncertain amount
C)always current liabilities
D)always long-term liabilities

Question

Quizplus · Accepted Answer

Estimated liabilities are obligations of an uncertain amount, such as warranties, tax liabilities, or legal claims. They may be either current or long-term liabilities depending on when they are due for payment. Therefore, neither option C nor option D is correct. Option A is incorrect because estimated liabilities may not necessarily be of an exact amount.

Estimated Liabilities Are ________