The liability section of the balance sheet does not include Warranty Expense.

Name: The liability section of the balance sheet does not include Warranty Expense.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Warranty Expense is included in the income statement as an expense and not in the balance sheet under liabilities. However, the liability for warranties is recorded in the balance sheet as a liability account called "Accrued Warranty Liability" or "Warranty Reserve."

The Liability Section of the Balance Sheet Does Not Include