Current liability possible, payments, following, understand, liability

hardwork24

I can't understand this question even reading answer. Please, help me!

Which of the following would most likely result in a current liability?
A. Possible warranty claims
B. Future operating lease payments
C. Estimated income taxes for the current year
The answer is C and there is the explain:
Estimated income taxes for the current year are likely reported as a current liability. To recognize the warranty expense, it must be probable, not just possible. Future operating lease payments are not reported on the balance sheet.

_Why estimated income taxes for the current year are likely reported as as current liability? do they mean tax payable?
_"it must be probable, not just possible" what does it mean?



Edited 1 time(s). Last edit at Saturday, December 19, 2009 at 11:27AM by silentnight103.