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What is an estimated liability

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Question 1 - What is an estimated liability? Why are warranty liabilities usually recognized on the balance sheet as liabilities even when they are uncertain?

Question 2 - What are the three important questions concerning the uncertainty of liabilities? Suppose that a company has a facility located where disastrous weather conditions often occur. Should it report a probable loss from a future disaster as a liability on its balance sheet? Explain.

Reference no: EM133131148

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