Warranty expense is recognized in the same period that the sales revenue is recognized because of the conservatism principle.

Name: Warranty expense is recognized in the same period that the sales revenue is recognized because of the conservatism principle.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Warranty expense is recognized in the same period as sales revenue due to the matching principle, which aims to match expenses with the revenues they help generate, not because of the conservatism principle.

Warranty Expense Is Recognized in the Same Period That the Sales