Payroll liabilities for current employees are:
A) Contingent liabilities.
B) Estimated liabilities.
C) Can be either current or long-term depending on when workers retire.
D) Current liabilities.
E) None of these answers is correct.

Question

Quizplus · Accepted Answer

Payroll liabilities for current employees are current liabilities because they are expected to be paid within the current accounting period. Contingent liabilities are potential obligations that may arise from past events, and estimated liabilities involve uncertainties in amount or timing. The classification of payroll liabilities as long-term would depend on factors such as the vesting period for retirement benefits, but the question specifies that it is for current employees.

Payroll Liabilities for Current Employees Are