Indicate whether each of the following statements is true or false.
-When a warranty claim is settled,the seller's equity decreases.

Name: Indicate whether each of the following statements is true or false. -When a warranty claim is settled,the seller's equity decreases.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is false. When a warranty claim is settled, it decreases assets (cash) and liabilities (warranties payable). It does not affect expenses, net income, or stockholders' equity.

Indicate Whether Each of the Following Statements Is True or False