Which of the following most likely is an estimated liability?
A)Liability for vacation pay
B)Payroll liabilities
C)Unearned revenues
D)Current portion of long-term debt

Question

Quizplus · Accepted Answer

Liability for vacation pay is typically an estimated liability, as it involves estimating the amount of paid time off employees will take in the future and accruing that expense in advance. Payroll liabilities, unearned revenues, and the current portion of long-term debt are not necessarily estimated liabilities, as their amounts are typically known or can be easily calculated.

Which of the Following Most Likely Is an Estimated Liability