An estimated liability:
A) Is an unknown liability of a certain amount.
B) Is a known obligation of an uncertain amount that can be reasonably estimated.
C) Is a liability that may occur if a future event occurs.
D) Can be the result of a lawsuit.
E) Is not recorded until the amount is known for certain.

Question

Quizplus · Accepted Answer

An estimated liability is a known obligation, but the exact amount cannot be determined with certainty. It can be reasonably estimated based on available information.

An Estimated Liability