Question: Why is the liability for warranties recognized when products are sold rather than when the warranty services are performed?

Why is the liability for warranties recognized when products are sold rather than when the warranty services are performed?

Step by Step Solution

★★★★★

3.41 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The matching concept requires that all of the expenses associated with a revenue be re... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

145-B-A-L (2004).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

Why is the liability risk much more difficult to gauge than the property risk?

Q:

The Legal Environment Dimension Why is the liability of the members of an LLC limited with respect to the firms debts and other obligations?

Q:

Why is the liability section of the balance sheet of primary significance to bankers in particular?

Q:

Why is the liability for warranties recognized when products are sold rather than when the warranty services are performed?

Q:

Why is the liability for warranties recognized when products are sold rather than when the warranty services are performed?

Q:

Why is the liability for warranties recognized when products are sold rather than when the warranty services are performed?

Q:

What is a provision? Why is the liability for warranties recognized when products are sold rather than when the warranty services are performed?(Appendix)

Q:

Riseva Corporation manufactures and sells energy efficient lighting systems. These systems include a complex dimmer module, and about 0.10% of all units sold require subsequent repair under the...

Q:

Riseya Corporation manufactures and sells energy efcient lighting systems. These systems include a complex dimmer module, and about 10% of all units sold require subsequent repair under the warranty....

Q:

Riseva Corporation manufactures and sells energy efficient lighting systems. These systems include a complex dimmer module, and about 10% of all units sold require subsequent repair under the...

Q:

19. The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau of Economic Analysis for 2011 and 2012. The data is listed per quarter, and the real GDP data...

Q:

Solve Problem 8.30 assuming that the diameter of the pipe is 1.5 in. 3 in. 0.75 in 9.5 in. 25 in.

Q:

9. Aerospace Part Manufacturing. The competitive advantage of small American factories such as Tolerance Contract Manufacturing lies in their ability to produce parts with highly narrow requirements,...

Q:

9 Make notes for a short presentation in which you explain the term customer experience and track its evolution.

Q:

OVERHEAD RATES, UNIT COSTS Xanning Company manufactures specialty tools to customer order. There are three producing departments. Departmental information on budgeted overhead and various activity...

Q:

The following cost formula was developed using monthly data for a hospital. Total Cost $51,400 ($125 3 Number of Patient Days) The term Number of patient days: a. is the variable rate. b. is the...

Q:

The following cost formula was developed using monthly data for a hospital. Total Cost $51,400 ($125 3 Number of Patient Days) The term Total cost: a. is the variable rate. b. is the intercept. c....

Q:

Evaluate the following slide and make recommendations for improving it. What You Need to Know - The prolect will nin 6 mantha - The juerpose of the propect is te croate a newid procesu for recalling...

Q:

Score: 0.5 Of 1 Find the standard deviation, s, of sample data summarized in the frequency distribution table below by using the formula below, where x represents the class midpoint, f represents the...

Q:

Please answer A through E! all components needed to answer the questions are in the picture. thank you! bends have a YTM of 16% and wit mature in 8 years. The ifivestment grade borids have a Bx. YTM,...