Indicate Whether Each of the Following Statements Is True or False

question 90

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)The extension of a warranty on goods sold normally represents a legal liability to the seller.
_____ b)The entry to recognize the warranty obligation increases the Warranties Payable account and reduces the Revenue account.
_____ c)The entry to record the repairs provided to customers under the terms of product warranties increase Warranties Expense and decrease the Warranties Payable account.
_____ d)Net income is not affected by the entry to record the completion of warranty work.
_____ e)Total assets are not affected by the end-of-period entry to record the warranty obligation.

---

Definitions:

Work Responsibilities

Duties and tasks assigned to an employee or a team within an organization.

Franchise

A type of business wherein a franchisor grants a franchisee the right to use its trademark, products, and business methods in exchange for a fee.

Open Source Software

Software with source code that anyone can inspect, modify, and enhance, promoting collaborative development and free distribution.

Franchisee

An individual or company that is granted the right by a franchisor to run a business under the franchisor's trademark and business model.