Indicate Whether Each of the Following Statements Is True or False

question 27

Short Answer

Indicate whether each of the following statements is true or false.
________ a)The extension of a warranty on goods sold normally represents a legal obligation to the seller of the goods.
________ b)The entry to recognize the warranty obligation increases the Warranties Payable account and decreases a revenue account.
________ c)The entry to record the payment of cash to settle a warranty claim increases expenses (Warranties Expense)and decreases liabilities (Warranties Payable).
________ d)Net income is not affected by the entry to record the payment of cash to settle a warranty claim.
________ e)Total assets are not affected by the adjusting entry to record the warranty obligation.

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Definitions:

Indirect Discrimination Scheme

Policies or practices that appear neutral but disproportionately impact a specific group in a negative way.

Direct Discrimination Scheme

Practices or policies that intentionally treat individuals unfavorably because of protected characteristics like race, age, or gender.

Advance-Purchase Discounts

Reductions in price offered to customers who pay for goods or services before they are received or required.

Indirect Price Discrimination

A pricing strategy where different prices are charged for the same product or service in different markets or segments, not directly based on consumer characteristics.