Which of the following statements related to estimated liabilities is false?
A. They are known obligations of an uncertain amount that can be reasonably estimated.
B. They include vacation benefits and paid absences.
C. They are always reported in the notes to financial statements
D. The journal entry to record estimated liabilities Includes a debit to an expense account and credit to a payable account.
E. They can be both current and long term.
Answer (1)
The false statement about estimated liabilities is that they are always reported in the notes to financial statements. While they are often included in financial reporting, there isn't a strict requirement for all estimated liabilities to be disclosed in detail. Other statements about estimated liabilities are accurate and highlight their characteristics and reporting practices. ;
