Which of the following is NOT a liability that must be​ estimated?

Question

Question content area bottom
Part 1
A.
accounts payable
B.
pension benefits
C.
health benefits
D.
bonuses

Answer 1

The correct answer is:

A. accounts payable

Accounts payable are typically not considered an estimate, as they represent amounts that a company owes to suppliers based on invoices received for goods and services already provided, and thus can be recorded at their actual amounts. Conversely, pension benefits, health benefits, and bonuses often require estimation due to uncertainties about future obligations and the timing of those payments.