Estimating a Warranty Expense in the Same Period as the Sales

question 46

Multiple Choice

Estimating a warranty expense in the same period as the sales revenue is recognized is an example of:

• A)the recognition criteria for revenues.
• B)the matching objective.
• C)the full-disclosure principle.
• D)conservatism.

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Definitions:

Information Systems

Comprise the study and use of systems for storing, retrieving, and sending information, and often focus on computer technology within an organizational context.

High-Performance Work System

An approach to organizational management that aims to improve employee performance and organizational outcomes through a variety of practices and policies.

Organizations

Structured groups of people with a particular purpose, such as businesses, governments, non-profits, and clubs.

Information Systems

Integrated sets of components for collecting, storing, and processing data and for providing information, knowledge, and digital products.