A determinable liability is one which
A) has uncertainty with the timing of the due date.
B) has uncertainty about the amount which is owed.
C) has a known payee.
D) has an amount which is due within one year.

Question

Quizplus · Accepted Answer

A determinable liability is one where the payee is known, meaning the entity or person to whom the debt is owed is identified. Choices A and B describe contingent liabilities, where there is uncertainty about the timing or the amount. Choice D describes a current liability, not specifically a determinable one.

A Determinable Liability Is One Which