Concerning accounting for warranties, which of the following statements is true?
A) The expense warranty accrual method is the only method accepted for federal income tax purposes.
B) The modified cash basis is the method used for for tax reporting.
C) The sales warranty accrual method uses a percentage of completion approach to warranty revenue recognition.
D) The modified cash basis recognizes warranty expense when cash is received on the sale.

Question

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The Answer of Concerning accounting for warranties, which of the following statements is true?
A) The expense warranty accrual method is the only method accepted for federal income tax purposes.
B) The modified cash basis is the method used for for tax reporting.
C) The sales warranty accrual method uses a percentage of completion approach to warranty revenue recognition.
D) The modified cash basis recognizes warranty expense when cash is received on the sale.

Concerning Accounting for Warranties, Which of the Following Statements Is