Which Statement About Warranties Is Correct

question 69

Multiple Choice

Which statement about warranties is correct?

• A)Warranties sold separately are accounted for under IFRS7.
• B)Warranties sold separately are accounted for under IFRS15.
• C)Warranties are financial liabilities and accounted for at fair value.
• D)Expected value uses a weighted average of possible outcomes.

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Definitions:

Amylase

One of a group of starch-splitting enzymes that cleave starch, glycogen, and related polysaccharides.

Maltase

An enzyme that breaks down maltose into glucose, playing a crucial role in the digestive process of carbohydrates.

Carbohydrates

Organic compounds, including sugars, starch, and cellulose, which serve as a major energy source in the diet of animals.

LDL Receptors

Proteins on cell surfaces that bind and internalize low-density lipoprotein (LDL) particles for degradation.