Which of the Following Accounting Principles Requires That Warranty Expenses

question 12

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:

Dividends Per Share

The amount of declared dividends for every share of common stock issued.

Common Stock

Common stock represents units of ownership in a public corporation, giving holders voting rights and a share in the company's profits via dividends.

Dividend Distribution

The payment of earnings to shareholders, typically in cash or additional shares, approved by the company's board of directors.

Stockholders' Equity

The residual interest in the assets of a corporation remaining after deducting its liabilities, representing ownership equity spread among shareholders.