During Year 1,its First Year of Operations,Benitez Co

question 41

Multiple Choice

During Year 1,its first year of operations,Benitez Co.reported sales of $800,000.At the end of Year 1,the company estimated its warranty obligation at 3% of sales.During Year 1,the company paid $13,000 cash to settle warranty claims.Which of the following statements is true?

• A) Warranty expenses would decrease net earnings by $24,000 in Year 1.
• B) Cash decreased by $13,000 as a result of the accounting events associated with warranties in Year 1.
• C) The warranties payable account has a balance of $11,000 at the end of Year 1.
• D) All of these answer choices are correct.

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Definitions:

Cell-Mediated Immunity

A form of immune response that does not involve antibodies, but rather involves the activation of phagocytes, antigen-specific cytotoxic T-lymphocytes, and the release of various cytokines in response to an antigen.

Memory Cells

Specialized immune cells that remain in the body after an initial exposure to an antigen, providing immunity by responding more rapidly and effectively to subsequent exposures.

Antibody-Mediated Immunity

A component of the adaptive immune system where B cells produce antibodies to identify and neutralize foreign substances like bacteria and viruses.

Cell-Mediated Immunity

A type of immunity where T lymphocytes directly attack and destroy infected or abnormal cells.