Which of the Following Accounting Policy Is Being Observed When

question 85

Multiple Choice

Which of the following accounting policy is being observed when we recognize a warranty obligation?

• A)materiality.
• B)consistency.
• C)full disclosure.
• D)timeliness.
• E)matching.

---

Definitions:

Commingled

Mixed together without any clear separation, especially referring to funds or assets.

Retained Earnings

Profits that a corporation keeps.

Reinvestment

The process of using the proceeds from an investment to purchase additional assets or securities in order to potentially increase wealth.

Self-Dealing

Any instance in which directors or officers make decisions that violate their corporate duty of loyalty.