Which of the Following Best Describes the Cash-Basis Method of Accounting

question 44

Multiple Choice

Which of the following best describes the cash-basis method of accounting for warranty costs?

• A) Expensed based on estimate in year of sale.
• B) Expensed when liability is accrued.
• C) Expensed when warranty claims are certain.
• D) Expensed when incurred.

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Definitions:

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The return on an investment with no risk of financial loss, typically represented by the yield on government Treasury bonds.

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