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Estimated Current Liabilities

18 August, 2015 - 17:43
LO3 - Record and disclose estimated current liabilities.
 

An estimated current liability is an obligation that exists at the balance sheet date. However, its amount can only be approximated – for because an invoice has not yet been received from a supplier. Two common examples of estimated liabilities are warranties and fees for services rendered by professionals like lawyers and auditors related to year-end financial statement preparation.