In order to be reported, liabilities must:
A)Be certain.
B)Sometimes be estimated.
C)Be for a specific known amount.
D)Always have a definite date for payment.
E)Involve an outflow of cash.

Question

Quizplus · Accepted Answer

Liabilities can sometimes be estimated, as long as the amount and timing can be reasonably determined. Certainty, a specific known amount, and a definite date for payment are not requirements for a liability to be reported. Additionally, liabilities can involve non-cash outflows as well, such as the transfer of goods or services.

In Order to Be Reported, Liabilities Must