If a Business Knows That a Liability Exists but Does

question 51

True/False

If a business knows that a liability exists but does not know the exact amount,the business is unable to record the liability.

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Definitions:

Gourmet Cupcake

A high-quality, often artistically decorated cupcake that is made with fine ingredients and presented as a luxury item.

Weekly Wages

The total amount of compensation that an employee receives on a weekly basis, typically as a result of hourly work or a fixed salary.

Materials

Substances or components that are used in the manufacturing or production of goods.

Annual Fixed Costs

Costs that do not vary with the volume of production or sales and are incurred on a yearly basis.