1. What are the three important questions concerning the uncertainty of liabilities?

2. What is the difference between a current and a long-term liability?

3. What is an estimated liability?

4. What is the combined amount (in percent) of the employee and employer Social Security tax rate?

5. What determines the amount deducted from an employee's wages for federal income taxes?

6. Which payroll taxes are the employee's responsibility and which are the employer's responsibility?

7. Why are warranty liabilities usually recognized on the balance sheet as liabilities even when they are uncertain?

8. 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.