MCQ:Which principle governs the accounting for interim period warranty costs?a) Record only actual claims paidb) Base on quarterly sales onlyc) Defer all costs to year-endd) Estimate annual rate and pro-rate

Step 1:As per the marching principle, expenses are recorded in the period in which they relate to…

Answered: MCQ: Which principle governs the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 13MC: Which of the following is not a characteristic of a short-term note payable? A. Payment is due in...

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MCQ: GENERAL ACCOUNTING
Which principle governs the accounting for interim
Warranty expenses result when a company sells products then estimates the units and cost per unit for repairs and replacements that may occur during the warranty period. True False
The estimated warranty obligation at the end of the financial year is best described as a A. Uncertain liability OB. Contingent liability O C. Liability O D. Constructive liability OE. Unrecognized liability
Warranty expenditures arise when a business sells items and then calculates the number of units and the cost per unit for possible repairs and replacements throughout the warranty term.True \sFalse
A short-term note payable: O Is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer O Is a contingent liability O Is an estimated liability O Is not a liability until the due date O Cannot be used to extend the payment period for an account payable
Which of the following is not a characteristic of a short-term note payable? A. Payment is due in less than a year. B. It bears interest. C. It can result from an accounts payable conversion. D. It is reported on the balance sheet under noncurrent liabilities.
When auditing product warranty liabilities, when should the warranty cost be recognized? Question 1 options: At the time the warranty work is performed At the time of purchase Evenly, annually over the life of the product In the last year of the product's life
Sigma Company began operations on January 1, 2020. On December 31, 2020 and 2021, the entity provided for uncollectible accounts expense based on 1% of annual credit sales. Required: Determine the allowance for doubtful accounts on January 1, 2021. Determine the allowance for doubtful accounts on December 31,2021 before adjustments. Determine the required allowance on December 31,2021. Prepare the adjustment to record the doubtful account expense for the current year.
Which of the following will be classified as a current liability? O a. Two-year noțes payable O b. Unearned rent Oc. Bonds payable Od. Mortgage loan
Calculate the missing information for the installment loan that is being paid off early. Number ofPayments PaymentsMade PaymentsRemaining Sum-of-the-Digits PaymentsRemaining Sum-of-the-Digits Numberof Payments RebateFraction 18 7
Which of the following is not considered a current liability?A. Accounts PayableB. Unearned RevenueC. the component of a twenty-year note payable due in year 20D. current portion of a noncurrent note payable

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MCQ: Which principle governs the accounting for interim period warranty costs? a) Record only actual claims paid b) Base on quarterly sales only c) Defer all costs to year-end d) Estimate annual rate and pro-rate