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:

Absolute Threshold

The minimum intensity of a stimulus that one can perceive, indicating the lowest level at which an individual can detect a stimulus 50% of the time.

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time.

Just Noticeable Difference (Jnd)

The least alteration in a stimulus that is just noticeable by an organism.

Absolute Threshold

The minimum stimulus intensity required for detection by a sense organ, signifying the point at which a stimulus becomes perceptible to the senses.