The Accounting Principle Requiring That a Company Record the Warranty

question 64

Multiple Choice

The accounting principle requiring that a company record the warranty expense in the same period that it records sales revenue is the:

• A)consistency principle.
• B)historical cost principle.
• C)matching principle.
• D)stable-dollar principle.

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Definitions:

Methods Section

A part of an academic paper or report that describes the procedures, techniques, and materials used in a study or investigation.

Decision Criteria

The key factors or benchmarks considered when making a decision or evaluating alternatives.

Necessary

Indispensable or essential to achieve a certain result or fulfil a condition.

Imperative

Referring to something of vital importance or crucial necessity.