Liabilities: Liabilities are the obligation of the business or amount payable by the business. Liabilities can current or long term. Current liabilities are liabilities payable within the short term or business cycle of the company, for example Accounts payable for purchases and utilities payable. Long term liabilities are liabilities payable in a long period/ years, for example long term loan. To indicate: The reason for recognising the warranty liability at the time of selling the product rather at the time when warranty services are performed.

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Answer 1

Question

Chapter 8, Problem 17DQ

To determine

Concept introduction:

Liabilities:

Liabilities are the obligation of the business or amount payable by the business. Liabilities can current or long term. Current liabilities are liabilities payable within the short term or business cycle of the company, for example Accounts payable for purchases and utilities payable. Long term liabilities are liabilities payable in a long period/ years, for example long term loan.

To indicate:

The reason for recognising the warranty liability at the time of selling the product rather at the time when warranty services are performed.

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Students have asked these similar questions

What accounting concept is reflected in recognizing warranty liabilities as liabilities even when they are uncertain?

Which of the following is NOT a contingent liability? a. Pending law suit for property damage b. Product warranty c. Discounted note receivable d. Pending law suit for slander

what accounts are used to record a contingent warranty liability that is probable and estimable but has yet to be fulfilled

Answer 2

Question

Chapter 8, Problem 17DQ

To determine

Concept introduction:

Liabilities:

Liabilities are the obligation of the business or amount payable by the business. Liabilities can current or long term. Current liabilities are liabilities payable within the short term or business cycle of the company, for example Accounts payable for purchases and utilities payable. Long term liabilities are liabilities payable in a long period/ years, for example long term loan.

To indicate:

The reason for recognising the warranty liability at the time of selling the product rather at the time when warranty services are performed.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 17DQ

To determine

Concept introduction:

Liabilities:

Liabilities are the obligation of the business or amount payable by the business. Liabilities can current or long term. Current liabilities are liabilities payable within the short term or business cycle of the company, for example Accounts payable for purchases and utilities payable. Long term liabilities are liabilities payable in a long period/ years, for example long term loan.

To indicate:

The reason for recognising the warranty liability at the time of selling the product rather at the time when warranty services are performed.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 8, Problem 17DQ

To determine

Concept introduction:

Liabilities:

Liabilities are the obligation of the business or amount payable by the business. Liabilities can current or long term. Current liabilities are liabilities payable within the short term or business cycle of the company, for example Accounts payable for purchases and utilities payable. Long term liabilities are liabilities payable in a long period/ years, for example long term loan.

To indicate:

The reason for recognising the warranty liability at the time of selling the product rather at the time when warranty services are performed.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 17DQ

To determine

Concept introduction:

Liabilities:

Liabilities are the obligation of the business or amount payable by the business. Liabilities can current or long term. Current liabilities are liabilities payable within the short term or business cycle of the company, for example Accounts payable for purchases and utilities payable. Long term liabilities are liabilities payable in a long period/ years, for example long term loan.

To indicate:

The reason for recognising the warranty liability at the time of selling the product rather at the time when warranty services are performed.

Answer 6

Chapter 8, Problem 17DQ

To determine

Concept introduction:

Liabilities:

Liabilities are the obligation of the business or amount payable by the business. Liabilities can current or long term. Current liabilities are liabilities payable within the short term or business cycle of the company, for example Accounts payable for purchases and utilities payable. Long term liabilities are liabilities payable in a long period/ years, for example long term loan.

To indicate:

The reason for recognising the warranty liability at the time of selling the product rather at the time when warranty services are performed.

Answer 7

Chapter 8, Problem 17DQ

To determine

Concept introduction:

Liabilities:

Liabilities are the obligation of the business or amount payable by the business. Liabilities can current or long term. Current liabilities are liabilities payable within the short term or business cycle of the company, for example Accounts payable for purchases and utilities payable. Long term liabilities are liabilities payable in a long period/ years, for example long term loan.

To indicate:

The reason for recognising the warranty liability at the time of selling the product rather at the time when warranty services are performed.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 8 - Prob. 1DQ Ch. 8 - Prob. 2DQ Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ Ch. 8 - Prob. 6DQ Ch. 8 - Prob. 7DQ Ch. 8 - Prob. 8DQ Ch. 8 - Prob. 9DQ Ch. 8 - Prob. 10DQ

Solution Summary: The author explains that the warranty liability is contingent liability that is probable and its reasonable amount can be estimated.

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Chapter 8 Solutions