The liability for product warranty claims is an example of a liability that:
A) has been calculated using estimates.
B) has been recorded in the process of matching revenue and expense.
C) also resulted in a reduction of net income.
D)all of the above.

Question

Quizplus · Accepted Answer

The liability for product warranty claims is an estimated liability that is recorded in order to match revenue and expense. It also results in a reduction of net income. Therefore, all the given options are correct; the liability has been calculated using estimates, recorded in the process of matching revenue and expense, and resulted in a reduction of net income.

The Liability for Product Warranty Claims Is an Example of a Liability