Which of the Following Accounting Principles Requires That Warranty Expenses

question 53

Multiple Choice

Which of the following accounting principles requires that warranty expenses must be estimated and recognized in the same period as the related sales revenue is recognized?

• A) The matching principle
• B) The disclosure principle
• C) The revenue principle
• D) The consistency principle

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Definitions:

Public Interest

The welfare or well-being of the general public, often considered in decision-making processes to ensure decisions benefit the majority.

Promotionally Motivated

Describes actions or strategies driven by the desire to promote or market a product, service, or brand to increase visibility and sales.

Corporate Social Responsibility

A company's commitment to managing the social, environmental, and economic effects of its operations responsibly and in line with public expectations.

Strategies

Carefully designed plans or methods aimed at achieving specific goals or objectives, often within business, military, or personal contexts.