Match the following items with the appropriate designation (Estimated liability, Contingent liability, or Known liability).
-Vacation benefits
A)Contingent liability
B)Estimated liability
C)Known liability

Question

Quizplus · Accepted Answer

Vacation benefits are considered an estimated liability because the employer is obligated to pay them, but the exact amount may not be known until the time comes for employees to use their vacation time.

Match the Following Items with the Appropriate Designation (Estimated Liability