The expected profit from a sales type warranty all be recognized in the period the warranty is sold. overs The cause for litigation must have occurred on or before the date of the financial statements to report a liability in the financial statements. A provision should be used only for the purpose for which it was originally recognized or set up.

The expected profit from a sales type warranty all be recognized in the period the warranty is sold. overs The cause for litigation must have occurred on or before the date of the financial statements to report a liability in the financial statements. A provision should be used only for the purpose for which it was originally recognized or set up.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 10MC: What accounts are used to record a contingent warranty liability that is probable and estimable but...

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19. Which of the following best describes the accounting for assurance-type warranty costs? * a. Expensed when paid. b. Expensed when warranty claims are certain. c. Expensed based on estimate in year of sale. d. Expensed when incurred.
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what accounts are used to record a contingent warranty liability that is probable and estimable but has yet to be fulfilled
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