Which of the following is an example of an estimated probable contingency?
A)FICA tax payable
B)Income tax payable
C)Warranty payable
D)Accounts payable

Question

Quizplus · Accepted Answer

A warranty payable is an example of an estimated probable contingency because it is an estimated liability based on the company's history of warranty claims and potential future claims. The other options (FICA tax payable, income tax payable, accounts payable) are all known liabilities that can be accurately measured and recorded.

Which of the Following Is an Example of an Estimated