Which of the Following Best Describes the Accounting for Assurance-Type

question 89

Multiple Choice

Which of the following best describes the accounting for assurance-type warranty costs?

• A)expensed when paid
• B)expensed when obligations are probable and estimable
• C)expensed based on estimate in year of sale
• D)expensed when warranty claims are certain

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Definitions:

Obligations

Duties or commitments that an individual or organization is bound to fulfil, often legally or morally.

Identifiable Groups

Collections of individuals who are recognizable by specific characteristics, attributes, or affiliations.

Harassment Policy

Guidelines and procedures set by organizations to prevent, address, and resolve incidents of harassment within the workplace.

Disciplinary Measures

Actions taken to correct or penalize undesirable behaviors within an organizational or educational setting.