Which of the Following Accounting Principles Requires That Warranty Expense

question 102

Multiple Choice

Which of the following accounting principles requires that warranty expense must be estimated and recognized in the same period when the related sales revenue is recognized?

• A) the matching principle
• B) the disclosure principle
• C) the revenue principle
• D) the consistency principle

Distinguish between different types of trial balances and their roles in accounting.

Recognize the significance of the Capital account balance in the post-closing trial balance.

Identify the proper sequencing of closing entries in the accounting cycle.

Understand the role of the Income Summary account in the closing process.