Indicate Whether Each of the Following Statements Is True or False

Indicate whether each of the following statements is true or false.
_____ a) The extension of a warranty on goods sold normally represents a legal liability to the seller.
_____ b) The recognition of the warranty obligation increases the Warranties Payable account and reduces the Revenue account.
_____ c) Providing repairs to customers under the terms of product warranties increase Warranties Expense and decrease the Warranties Payable account.
_____ d) Net income is not affected when warranty work is completed.
_____ e) Total assets are not affected by the recognition of the warranty obligation at the end of the period.