The liability for product warranty claims is an example of a liability that:
A)has been calculated using estimates.
B)has been recorded in the process of matching revenue and expense.
C)also resulted in a reduction of net income.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

The liability for product warranty claims involves estimates (A), is recorded to match revenue and expense (B), and results in a reduction of net income (C). Therefore, all options are correct.

The Liability for Product Warranty Claims Is an Example of a Liability