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:

Public Policy

Principles and standards that guide government actions and decisions in order to serve the best interests of the general public or certain groups within it.

Agreement

A mutual understanding or arrangement between two or more parties, often formalized by a contract or other legal document.

Lobby

To seek to influence a politician or public official on an issue, often conducted by lobby groups or lobbyists.

In Pari Delicto

A legal doctrine that prevents a plaintiff who has participated in wrongdoing from recovering damages for loss resulting from the wrongdoing.