Information Available Prior to the Issuance of the Financial Statements

question 30

Multiple Choice

Information available prior to the issuance of the financial statements indicates that it is probable that, at the date of the financial statements, a company has a present obligation related to product warranties.The amount of the expense involved can be reasonably estimated.Based on the above facts, the estimated warranty expense should be

• A)accrued.
• B)disclosed but not accrued.
• C)neither accrued nor disclosed.
• D)classified as an appropriation of retained earnings.

---

Definitions:

Attributional Style

A person's habitual way of explaining the events of their life, particularly the causes of positive and negative events.

Individualistic Societies

Cultures where personal achievements and independence are valued over group goals and harmony, leading to a focus on individual rights and autonomy.

United States

A federal republic consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for its significant influence on world politics, economy, and culture.