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.

Understand the distinction between total variable cost and total cost, including how to calculate each.

Analyze how production levels affect cost structures, specifically regarding economies and diseconomies of scale.

Interpret cost data to understand the behavior of cost curves, including Average Total Cost (ATC), and Marginal Cost (MC) curves.

Define and calculate average fixed costs for different levels of output.

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Definitions:

Checks and Balances

A system in which different parts of an organization or government have powers that affect and control the other parts, preventing any one part from becoming too powerful.

Equal Protection Clause

The provision in the Fourteenth Amendment to the U.S. Constitution that guarantees that no state will “deny to any person within its jurisdiction the equal protection of the laws.” This clause mandates that state governments treat similarly situated individuals in a similar manner.

Suspect Trait

A characteristic or feature in a person that may cause them to be viewed with suspicion or as a potential culprit in a criminal investigation.

Compelling Government Interest

A test of constitutionality that requires the government to have compelling reasons for passing any law that restricts fundamental rights, such as free speech, or distinguishes between people based on a suspect trait.