The matching objective requires that companies record warranty expense at the time the repair is made.

Name: The matching objective requires that companies record warranty expense at the time the repair is made.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

The matching principle requires that companies match expenses with related revenues in the period in which the revenue was earned, which means warranty expense should be estimated and recorded in the same period the product is sold, not when the repair is actually made.

The Matching Objective Requires That Companies Record Warranty Expense at the Time