In a service-type warranty, warranty revenue is ________.
A) not recognized
B) recognized equally over the warranty period
C) recognized only in the last year of the warranty period
D) recognized in the year of sale of the associated product

Question

Quizplus · Accepted Answer

In a service-type warranty, the warranty revenue is recognized equally over the warranty period because the service is provided over time, and revenue recognition aligns with the service delivery.

In a Service-Type Warranty, Warranty Revenue Is ________