The Accounting Principle That Requires a Company to Record Warranty

question 58

Multiple Choice

The accounting principle that requires a company to record warranty expense in the same period that it records sales revenue is the:

• A)going concern principle.
• B)expense recognition principle.
• C)conservatism principle.
• D)consistency principle.

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Definitions:

Materials Management

The branch of logistics that focuses on physically sourcing, moving, and storing materials, as well as coordinating these operations to ensure the right materials are available at the right time.

Logistics Function

The specific tasks and operations within logistics, focusing on the efficient and effective movement and storage of goods.

Time Utilities

The value added to products or services by making them available when they are needed or wanted by consumers.

Place Utilities

The value added to products by having them available at locations where they are needed or wanted by consumers.