A liability, to be reported on the statement of ﬁnancial position, must have a ﬁxed, known amount to be paid in the future.

Name: A liability, to be reported on the statement of ﬁnancial position, must have a ﬁxed, known amount to be paid in the future.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A liability can have an estimated or uncertain amount to be paid in the future, such as a lawsuit settlement or warranty costs. However, the amount should be estimated to be reasonably reliable and measurable.

A Liability, to Be Reported on the Statement of ﬁNancial