Using the Revenue Approach of Accounting for Product Guarantees and Warranty

question 75

Multiple Choice

Using the revenue approach of accounting for product guarantees and warranty obligations

• A)the liability is measured at the estimated cost of meeting the obligation.
• B)there is no effect on future income.
• C)the liability is measured at the value of the services to be provided.
• D)the liability is measured at the value of the services to be provided, but there is no
• Effect on future income.
• Non-Financial and Current Liabilities 13- 13

---

Definitions:

Foramen

An opening, hole, or passage, often in bone, through which nerves or blood vessels may pass.

Diploë

Diploë refers to the spongy bone layer between the inner and outer layers of cortical bone in the skull, which houses marrow and blood vessels.

Spongy Bone

A type of bone that is porous and less dense, found at the ends of long bones and in the inner layers of other bones, providing structural support and flexibility.

Connective Tissue

Tissue that supports, binds together, and protects organs, consisting of cells embedded in a large amount of extracellular matrix.