Which of the Following Is Included in the Entry to Record

question 64

Multiple Choice

Which of the following is included in the entry to record warranty expense?

• A)A debit to Warranty expense
• B)A credit to Warranty expense
• C)A credit to Inventory
• D)A debit to Estimated warranty payable

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Definitions:

Compounded Semiannually

A calculation method where interest is applied to the principal plus previously accumulated interest twice per year.

Face Value

The nominal or dollar value printed on a financial instrument such as a bond or stock certificate, representing the value the issuer promises to pay at maturity.

Investment Yield

The earnings generated and realized on an investment over a particular period of time, expressed as a percentage of the investment's cost.

Maturity Date

The final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.