Which of the following is NOT an exact liability?
A) FICA tax payable
B) Income tax payable
C) Warranty payable
D) Accounts payable

Question

Quizplus · Accepted Answer

FICA tax payable, income tax payable, and accounts payable are all exact liabilities as they represent debts that have specified amounts owed. Warranty payable, on the other hand, is an estimated liability as the precise amount owed will depend on the number of warranties that must be honored in the future.

Which of the Following Is NOT an Exact Liability