Two principal categories of current liabilities are definitely determinable liabilities and estimated liabilities. Although definitely determinable liabilities, such as accounts payable, notes payable, dividends payable, accrued liabilities, and the current portion of long-term debt, can be measured exactly, the accountant must still be careful not to overlook existing liabilities in these categories. Estimated liabilities, such as liabilities for income taxes, property taxes, and product warranties, definitely exist, but the amounts must be estimated and record properly.
