Warranty expense would be included in the liability section of the balance sheet.

Name: Warranty expense would be included in the liability section of the balance sheet.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Warranty expense is recorded as a liability when the expense is estimated, but the specific expense related to warranties is recognized in the income statement as an expense, not on the balance sheet. The estimated liability for future warranty claims is what appears in the liability section of the balance sheet.

Warranty Expense Would Be Included in the Liability Section of the Balance