Table of contents

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1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

A known obligation of an uncertain amount that can be reasonably estimated is called a(n) ______ liability.

estimated

contingent

long-term

current

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Understand the definition of each type of liability mentioned in the options: 'estimated,' 'contingent,' 'long-term,' and 'current.'

Recognize that an 'estimated liability' refers to a known obligation where the exact amount is uncertain but can be reasonably estimated. Examples include warranties or employee benefits.

Identify that a 'contingent liability' depends on future events that are uncertain and may or may not occur, such as lawsuits or guarantees.

Differentiate 'long-term liabilities' as obligations that are due beyond one year, such as bonds payable, and 'current liabilities' as obligations due within one year, such as accounts payable.

Conclude that the correct term for a known obligation of an uncertain amount that can be reasonably estimated is 'estimated liability,' based on the definitions provided.