A known obligation of an uncertain amount that can at least be reasonably estimated is reported as an estimated liability.

Question

Quizplus · Accepted Answer

A known obligation of an uncertain amount that can at least be reasonably estimated is reported as an estimated liability under accounting principles. This estimate is based on past experience, industry trends, and any other available relevant information that can help determine the probable amount of the liability.

A Known Obligation of an Uncertain Amount That Can at Least