Warranty expense is recognized when products are sold.This is required by the ________.
A)revenue recognition principle
B)matching principle
C)full disclosure principle
D)going concern principle

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recognized in the same period as the revenues they helped to generate. In the case of warranty expense, this means recognizing it when the products are sold, as the warranty costs relate to the sale of the products.

Warranty Expense Is Recognized When Products Are Sold