Which of the following statements is not true regarding the treatment of warranties under the new revenue recognition guidance in ASC Topic 606? A warranty that assures the product is free of defects is not a distinct performance obligation. Warranties that provide services beyond assuring the product is defect-free at the time of sale are separate performance obligations. A warranty that covers services that are normally considered routine maintenance is an assurance warranty. The length of the warranty period should be considered.

Which of the following statements is not true regarding the treatment of warranties under the new revenue recognition guidance in ASC Topic 606? A warranty that assures the product is free of defects is not a distinct performance obligation. Warranties that provide services beyond assuring the product is defect-free at the time of sale are separate performance obligations. A warranty that covers services that are normally considered routine maintenance is an assurance warranty. The length of the warranty period should be considered.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

7
TRUE OR FALSE An instrument payable out of a contingency is not negotiable even if the contingency happened. The drawee in a promissory note must be named or otherwise indicated therein with reasonable certainty. An endorsement cannot be stricken out. A person who signed an instrument without indicating in what capacity he signs shall be considered an endorser. The defense that the instrument is undelivered and was completed without authority is a real defense.
How can you tell if a warranty should be treated as a quality-assurance warranty or an extended warranty?
A promise to grant a license is most likely indistinct if [A] The license is not integral to the functionality of a tangible good. [B] The customer can benefit from the license separate from other related services. [C] This performance obligation is satisfied over the time. [D] The customer can benefit from the license on its own and the license is separately identifiable. [S1] The insurer of an insurance contract becomes the policy holder in a reinsurance contract. [S2] Retrocession is where the insurance risk is transferred from one reinsurer to another reinsurer. [A] both are true [B] both are false [C] S1 is true [D] S2 is true Goods on consignment should be included in the inventory of [A] The consignor but not the consignee, [B] Both the consignor and consignee. [C] The consignee but not the consignor. [D] Neither the consignor nor the consignee. Which of the following is not a criterion required to recognize that a contract with a customer is created? [A] The contracting…
Statement 1: Under an assurance-type warranty, companies charge warranty costs only to the period in which they comply with the warranty. Statement 2: For purposes of recognizing a provision, “probable” is defined as more likely than not. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect.
Fill in the blanks to complete sentence. 8. ______bond ensures the repayment of the advance by the exporter in the event of the non-performance of his contractual obligations.
Which of the following is an INCORRECT statement regarding a fully disclosed agency? OA. A fully disclosed principal is liable on a contract with the third party. OB. In a fully disclosed agency, the agent's signature must clearly indicate that he or she is acting as an agent for a specifically identifie OC. In a fully disclosed agency, the agent is not liable on the contract with the third party. OD. In a fully disclosed agency, the contract is between the agent and the third party. OE. In a fully disclosed agency, the third party typically relied on the principal's credit and reputation when the contract was made.
H received an indorsement from C. The indorsement was located at the back of the check. Upon inspection, H noticed that the check does not have a date. What is the effect to the negotiable instrument? A. The negotiable instrument is invalidated because the date signifies the maturity of the instrument B. The negotiable instrument is lacking a very important detail particularly the seal of the indorser C. The missing date does not affect the negotiability of instrument D. It is not the date which is important. It is the acceptance of the drawer for the indorsement made by C.
The relationship between a banker and its customers are not only fiduciary in nature but contractual as well. Therefore under any contractual terms, there exist terms and conditions, also known as an exclusion clause to protect the maker of the statement. With regards to case law, explain the rules of “incorporating” an exclusion clause in order for it to work.
Regardless of whether the buyer is aware of the security interest, so long as the buyer purchases the good for his or her personal use, the secu terminates if the sale to the new buyer is made before the original secured party files a financial statement. O As long as the buyer is not aware of the security, interest, purchases the good for personal use or resale, and purchases good before the secure financial statement, the buyer obtains the good free of the security interest. O The security interest immediately terminates. O The security interest passes to the new buyer. QUESTION 20 Which of the following methods of perfection should a bank use if it wishes to ensure it will not have to expend efforts in repossession? O A bank cannot ensure it will not have to repossess the collateral. O Perfection by filing. O Perfection by collateral in interest. O Perfection by possession.. O Perfection by implication. QUESTION 21 By which of the following is a mechanic's lien created? O Consent O…
53. Which type of warranty is/are accounted for as a separate performance obligation: 1- A normal warranty that the customer can purchase the warranty separately, 2- A normal warranty that provides a service in addition to assurance that the product complies with specifications, 3- A normal warranty that provides assurance that the product complies with specifications Select one: а. b. 2 C. 1 d. 1 and 3 е. 1 and 2