Liabilities Whose Amounts Must Be Estimated Are Disclosed in Financial

question 85

Multiple Choice

Liabilities whose amounts must be estimated are disclosed in financial statements by

• A)including details in the footnotes
• B)describing the estimated liabilities among the liabilities on the balance sheet but not including the amounts in the liability totals
• C)an appropriation of retained earnings
• D)including the amounts in the liability totals

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Definitions:

NSF Check

A check that cannot be processed because the drawer's account does not have sufficient funds, standing for Non-Sufficient Funds.

Deposit In Transit

Funds that have been deposited by a company but not yet credited to its bank account.

Ledger

A comprehensive collection of a company's financial accounts.

Petty Cash Fund

A small amount of cash kept on hand by a business for making immediate payments for miscellaneous small expenses.