Warranties Should Be Accrued If It Is

question 90

Multiple Choice

Warranties should be accrued if it is

• A)probable that an expense has been incurred and the amount is reasonably estimable.
• B)possible that an expense has been incurred regardless of whether the amount is estimable or not.
• C)possible that an expense will be incurred and the amount is reasonably estimable.
• D)remote that any expense has been incurred.

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Definitions:

Directly Observed

A method or instance where actions or behaviors are watched and recorded in real time.

Inferred

Deduced or concluded information from evidence and reasoning rather than from explicit statements.

Performance

A measure of how effectively a person or system completes tasks or achieves goals.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or behaviors).