Concerning Accounting for Warranties, Which of the Following Statements Is

question 91

Multiple Choice

Concerning accounting for warranties, which of the following statements is false?

• A) The GAAP approach of accruing warranty expense and the related liability) in the year of the sale is not an acceptable method for federal income tax purposes.
• B) The modified cash basis is the most conceptually sound method for financial reporting.
• C) In accounting for service-type warranties, companies much report warranty expense in the period of sale.
• D) The modified cash basis recognizes warranty expense when cash is paid for the repairs to merchandise under warranty.

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Definitions:

Existential Assumptions

Fundamental beliefs that individuals hold regarding their existence, purpose, and the nature of the world.

Innate Need

An internal requirement of essential significance for an organism's health and development, often presumed to be inborn.

Rogerian Psychotherapy

A therapeutic approach based on the principles of Carl Rogers, emphasizing empathy, unconditional positive regard, and the client's self-worth.

Ideal Selves

The concept of an idealized version of oneself, representing the attributes, abilities, and traits that one aspires to possess.