The warranty liability account will be carried from year to year and will be increased by
A) current years repairs to non-warranty products.
B) current years estimated warranty expense.
C) prior years estimated warranty expense.
D) current years actual warrant expense.

Question

Quizplus · Accepted Answer

The warranty liability account is increased by the current year's estimated warranty expense to account for future warranty claims on products sold during the year. This estimation is based on historical data and projections.

The Warranty Liability Account Will Be Carried from Year to Year