Which of the following is an example of an estimable 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 estimable probable contingency because the company knows that it will have to pay for warranty repairs, but the exact amount and timing of those payments may not be certain. The other options listed are not contingencies and are instead recognized liabilities for which the exact amount and timing of payment are known or can be reasonably estimated.

Which of the Following Is an Example of an Estimable