Hi-Tech Company Produces Widgets That Cost $60 Each and Have $\begin{array}{llr} \text { Product Warranty Expense } &300\\ \text { Estimated Product Warranty Liability } &&300\\\end{array}$

question 33

Multiple Choice

Hi-Tech Company produces widgets that cost $60 each and have a 5 percent failure rate.If 500 widgets are sold,the entry to record the estimated product warranty expense would be

• A)
• \(\begin{array}{llr}
• \text { Product Warranty Expense } &300\\
• \text { Estimated Product Warranty Liability } &&300\\
• \end{array}\)
• B)
• \(\begin{array}{llr}
• \text { Product Warranty Expense } & 1,500\\
• \text { Estimated Product Warranty Liability} && 1,500\\
• \end{array}\)
• C)
• \(\begin{array}{llr}
• \text { Product Warranty Expense} &150\\
• \text { Cash } &&150\\
• \end{array}\)
• D)
• \(\begin{array}{llr}
• \text { Estimated Product Warranty Liability } &75\\
• \text { Cash } &&75\\
• \end{array}\)

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Definitions:

Predictive Validity

The extent to which a score on a test or measurement accurately predicts future performance on a related task or behavior.

Concurrent Validity

The degree to which the results of a particular test or measurement correspond to those of a previously established measurement for the same construct.

Content Validity

The extent to which a test measures all aspects of the concept or construct it intends to assess, ensuring that the test is fully representative.

Mental Status Exam

A structured assessment of a patient's level of cognitive function, emotional state, and other areas of mental health, often used in psychiatric evaluations.