Which of the following liabilities is most likely an estimated amount rather than an amount known with certainty?
A) Wages payable
B) FICA taxes payable
C) Accounts payable
D) Income tax payable
E) All of the above are amounts known with certainty.

Question

Quizplus · Accepted Answer

Income tax payable is often an estimated amount because it depends on the taxable income of the entity, which can involve estimates and judgments about allowable deductions, credits, and other tax provisions until the tax return is actually filed and assessed.

Which of the Following Liabilities Is Most Likely an Estimated