The Need to Create an Estimated Warranty Liability Arises from the ________

question 54

Multiple Choice

The need to create an estimated warranty liability arises from the ________ principle.

• A)matching
• B)entity
• C)conservatism
• D)objectivity

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Definitions:

Fair Value

Fair Value is the estimated market value of an asset or liability, based on current conditions and comparable transactions.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue; the higher the ratio, the more efficiently assets are being used.

Additions And Improvements

Costs incurred to increase the operating efficiency, productive capacity, or useful life of a plant asset.

Accumulated Depreciation

The total depreciation expense that has been charged against an asset since it was acquired.