Accruing product warranty expense at the end of an accounting period is a/an ________ transaction.
A) asset source
B) asset use
C) asset exchange
D) claims exchange

Name: Accruing product warranty expense at the end of an accounting period is a/an ________ transaction. A) asset source B) asset use C) asset exchange D) claims exchange
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Question

Quizplus · Accepted Answer

Accruing product warranty expense increases liabilities (warranty liability) and decreases equity (retained earnings), which is a claims exchange transaction.

Accruing Product Warranty Expense at the End of an Accounting