Match the Following Items with the Appropriate Designation (Estimated Liability

question 48

Multiple Choice

Match the following items with the appropriate designation (Estimated liability, Contingent liability, or Known liability) .
-Sales taxes payable

• A)Contingent liability
• B)Estimated liability
• C)Known liability

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Definitions:

Bookkeeping

The practice of recording all financial transactions, ensuring accuracy and completeness in the financial records of an organization.

Accrual Basis Accounting

An accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Cash Flow

The total amount of money being transferred into and out of a business, affecting the organization's liquidity.

Fund-Raising Results

The outcomes or achievements of efforts to collect financial resources or donations, often critical for the operation and projects of nonprofit organizations.