The Accounting Principle Requiring That a Company Record the Warranty

question 27

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) going concern principle.
• B) matching principle.
• C) conservatism principle.
• D) consistency principle.

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Definitions:

Shared Values

Fundamental beliefs or principles that are collectively agreed upon by members of an organization or community and guide their behavior.

Organization Culture

The shared values, beliefs, and norms that influence the way employees behave within an organization.

Accepted Insiders

Individuals who are recognized and accepted as being part of a particular group, often having access to specific knowledge, privileges, or experiences exclusive to the group.

Mechanistic

Pertaining to a rigid and structured approach, often related to organizations or processes that are highly systematic and controlled.