question 5 (5 points) which of the following is considered an estimated liability? a) sales tax payable b)…

question 5 (5 points) which of the following is considered an estimated liability? a) sales tax payable b) warranties payable c) pending litigation d) notes payable

question 5 (5 points) which of the following is considered an estimated liability? a) sales tax payable b) warranties payable c) pending litigation d) notes payable

Answer

Brief Explanations:

Sales - tax payable is a known liability based on sales amounts. Pending litigation may or may not result in a liability and is more of a contingent - liability. Notes payable have a definite amount and terms. Warranties payable is an estimated liability as the company estimates the amount of future warranty claims based on past experience and product sales.

Answer:

B. Warranties payable