Which of the following is a characteristic of the expense warranty approach, but not the sales warranty approach?
A) Estimated liability under warranties.
B) Warranty expense.
C) Unearned warranty revenue.
D) Warranty revenue.

Question

Quizplus · Accepted Answer

Estimated liability under warranties is a characteristic of the expense warranty approach, but not the sales warranty approach. Under the expense warranty approach, the estimated liability for warranties is recorded as an expense in the period of sale. Under the sales warranty approach, the estimated liability for warranties is not recorded until the warranty is actually used.

Which of the Following Is a Characteristic of the Expense