Warranty payable is an example of a liability that exists, but its exact amount is not known.

Name: Warranty payable is an example of a liability that exists, but its exact amount is not known.
Brand: Quizplus
Rating: 4.7 (39 reviews)

Question

Quizplus · Accepted Answer

Warranty payable is an example of an estimated liability where the exact amount is dependent on future events, such as the number of warranty claims made. Therefore, its exact amount cannot be determined with certainty at the present time.

Warranty Payable Is an Example of a Liability That Exists