A Warranty Provided When a Customer Exercises an Option to Purchase

question 23

Multiple Choice

A warranty provided when a customer exercises an option to purchase a warranty is recorded as

• A)an expense in the period the goods or services are sold.
• B)a warranty liability for all costs incurred after sale due to correction of defects.
• C)revenue in the period that the service-type warranty is in effect.
• D)an assurance type warranty which is included in the sales price of the product.

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Definitions:

Mary McLeod Bethune

An African American educator and civil rights leader who founded the National Council of Negro Women and played a significant role in the New Deal government.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to counteract the effects of the Great Depression.

Agricultural Policies

Strategies and regulations implemented by governments to influence their agricultural sector's economic activities, including subsidies, tariffs, and farming guidelines.

Landless Farmworkers

Agricultural laborers who do not own the land on which they work, often living in conditions of poverty and dependency.