Because the Sale of a Service-Type Warranty Increases Sales Revenue

question 83

True/False

Because the sale of a service-type warranty increases sales revenue, the seller should recognize the expense of providing that warranty in the year of sale.

---

Definitions:

Serial-Position Effect

A phenomenon in memory that suggests that when learning a list, people tend to remember the first and last items better than those in the middle.

Alphabet

A set of letters or symbols in a fixed order used to represent the basic sounds of a language, particularly for writing.

Mnemonic Devices

Techniques a person can use to help them improve their ability to remember something, often by associating patterns, such as letters or associations, with the information being memorized.

Procedural Memory

The type of long-term memory responsible for knowing how to do things, also known as muscle memory.