All of the following statements related to recording warrantyexpense are true except:

Recording estimated warranty expense complies with the fulldisclosure principle.

Warranty expense should be recorded in the period when thewarranty service is performed.

Recording estimated warranty expense complies with the matchingprinciple.

The seller reports a warranty obligation as a liability.

Warranty costs are probable and the amount can be estimated.

Answer rating: 100% (QA)

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