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:

Cognitive Flexibility

The mental ability to switch between thinking about two different concepts, or to think about multiple concepts simultaneously.

Bilingual Children

Children who have the ability to understand and use two languages, which can influence cognitive development and cultural identity.

Passive Sentences

Sentences where the subject receives the action of the verb, emphasizing the action rather than who is performing it.

Middle Adulthood

The stage of adulthood between early adulthood and late adulthood, beginning at 40 to 45 and ending at 60 to 65.