Which of the Following Would Be Considered an Estimated Liability

question 110

Multiple Choice

Which of the following would be considered an estimated liability?

• A)Notes payable
• B)Warranties payable
• C)Pending litigation
• D)Sales tax payable

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Definitions:

Selling And Administrative Expense

Costs related to the selling of products and the management of the company, excluding production costs.

Merchandise Purchases Cost

is the total cost associated with buying inventory for resale, including the purchase price, shipping, and handling fees.

Budgeted Cost

An estimated amount set aside for expenditures in the budgeting process, serving as a financial guideline for spending.

Raw Material Purchases

The acquisition of basic materials that are either consumed in the production process or included as part of the finished goods.