Which of the Following Statements Is INCORRECT Concerning Warranties

question 21

Multiple Choice

Which of the following statements is INCORRECT concerning warranties?

• A) Using the expense approach, the warranty is provided with the product or service with no additional fee.
• B) Where warranty costs are immaterial or when the warranty period is quite short, the warranty costs may be accounted for using the cash basis.
• C) Using the revenue approach, the warranty is a separate deliverable from the related product or service.
• D) The revenue approach must be used for income tax purposes.

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Definitions:

Kinship

The system of social relationships that form an integral part of the lives of most humans in most societies, including relationships derived through descent and marriage.

State

A political institution established to manage and defend a complex, socially stratified society occupying a defined territory. It is organized and directed by a government that has the capacity to make rules, impose order, tax its subjects, and use military force to defend or expand its territories.

Territorial State

A state that exercises sovereignty over a defined geographical territory and the people within it, with recognized borders.

Ethnic Groups

Collectives of people who share a common identity based on factors like culture, language, ancestry, or national origin.