Which Statement About Warranties Is Correct

question 31

Multiple Choice

Which statement about warranties is correct?

• A)Warranties are provisions.
• B)Warranties included with the product sold are accounted for under IAS18.
• C)Warranties are financial liabilities.
• D)Warranties included with the product sold are accounted for under IAS39.

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Definitions:

Residential Rental Properties

Real estate properties that are leased or rented out to individuals to live in, as opposed to commercial properties.

Flow-Through Entities

Business entities that pass their income, deductions, and credits down to their owners for tax purposes, avoiding taxation at the corporate level.

LLC's

Stands for Limited Liability Companies, a business structure in the U.S. that offers personal liability protection to its owners but can be taxed as a partnership.

S Corporations

A special designation of corporation that allows income to be taxed only at the shareholder level, avoiding double taxation.