An estimated liability:

1. Is an unknown liability of a certain amount.

2. Is a known obligation of an uncertain amount that can be reasonably estimated.

3. Is a liability that may occur if a future event occurs.

4. Is not recorded until the amount is known for certain.

(PLEASE PICK ONE ANSWER)

The correct answer is:

2. Is a known obligation of an uncertain amount that can be reasonably estimated.

To arrive at the correct answer, it is helpful to understand the concept of estimated liabilities.

Estimated liabilities are obligations that a company may owe in the future but the exact amount is not known with certainty at the present time. However, these liabilities can still be reasonably estimated based on available information.

For example, a company may have a legal case pending against them, and they know that they will have to pay damages, but the exact amount of damages has not been determined yet. In such cases, the company would record an estimated liability on its balance sheet based on the best estimate of the potential obligation.

It is important to note that estimated liabilities are recorded in a company's financial statements as long as the amount can be reasonably estimated and the obligation is probable. The actual amount of the liability may vary in the future, and any changes would be adjusted accordingly.

Therefore, option 2, "Is a known obligation of an uncertain amount that can be reasonably estimated," is the most accurate description of an estimated liability.