Estimated and Accrued Liabilities Flashcards
1
Q
What represents recognition of a probable future charge that results from a prior act?
A
Estimated liability
2
Q
Calculation for total estimated coupon redemptions?
A
Total number coupons issued x estimated redemption rate
3
Q
When should sellers create a liability account for a warrant?
A
If the cost of the warranty can be reasonably estimated
4
Q
What does accrued liability represent?
A
Expense recognized or incurred but not yet paid
