Which of the Following Statements Is INCORRECT Concerning Warranties

question 228

Multiple Choice

Which of the following statements is INCORRECT concerning warranties?

• A)Using the expense approach, the warranty is provided with the product or service with no
• Additional fee.
• B)Where warranty costs are immaterial or when the warranty period is quite short, the
• Warranty costs may be accounted for using the cash basis.
• C)Using the revenue approach, the warranty is a separate deliverable from the related
• Product or service.
• D)The revenue approach must be used for income tax purposes.

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Definitions:

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.

Autonomic

Pertaining to the autonomic nervous system, which controls involuntary body functions like heart rate and digestion.

Somatic Nervous Systems

A part of the peripheral nervous system associated with voluntary control of body movements via the use of skeletal muscles.

Sensory Systems

Sensory systems are the parts of the nervous system responsible for processing sensory information from the environment, including sight, sound, touch, taste, and smell.