Liabilities that exist but whose exact amount is not known must be:
A)ignored.
B)estimated.
C)reported in the notes to the financial statements.
D)treated as a contingent liability.

Question

Quizplus · Accepted Answer

Liabilities that exist but whose exact amount is not known must be estimated to ensure that financial statements reflect a true and fair view of the company's financial position.

Liabilities That Exist but Whose Exact Amount Is Not Known