How can you tell if a warranty should be treated as a quality-assurance warranty or an extended warranty?

Q: Explain the accounting for an assurance-type warranty

A:

Q: Which are the major problems facing a lender when reviewing a loan request made by a borrower?

A: Introduction: A loan agreement is nothing but an agreement between a lender and the borrower which…

Q: Describe why do sellers offer quality-assurance warranties?

A:

Q: Why do sellers offer quality-assurance warranties?

A:

Q: Someone who doesn't sign an instrument still makes warranties.    True or False

A: Answer:   False.

Q: What are warranty payments? Please explain.

A: A Warranty is a basically a handwritten promise made by the seller to the buyer on paper that if the…

Q: Why are warranty liabilities usually recognized on the balance sheet as liabilities even when they…

A: A warranty liability is a liability account that reports the estimated amount that a company will…

Q: extended warranties

A: We know that as per IAS 37( Provisions, Contingent Liabilities, and Contingent Assets ) A provision…

Q: Explain the accounting for a service-type warranty.

A: Warranty: Warranty can be defined as a promissory document which is given by the manufacturer to…

Q: When can a check be a negotiable instrument

A: In finance in general and in the world of banking, trade and commerce in particular checks and…

Q: Which one of the following options is correct for a journal entry creating provision for warranty…

A: SOLUTION- THE COMPANY NEEDS TO MAKE PROVISION OF WARRANTY WHEN IT SELLS THE PRODUCT WITH THE…

Q: The adjustment will increase the warranty expense, if the actual cost of warranty exceeds the…

A: Answer: Warranty is the promise that is made by business on any product that is being sold.

Q: Describe the fundamental requirements of a valid deed and distinguish among warranty, special…

A: Valid Deed: A deed is a written document that shows that the title of ownership has been transferred…

Q: 2. Which of the following best describes the accounting for assurance-type warranty costs?

A: An assurance-type warranty provides an assurance to repair or replace the defective product.

Q: Define Quality-assurance warranty.

A:

Q: A deposit premium can be defined as The initial payment schedule required to institute a premium…

A: An insurance contract is a contract where the insured pays the insurer premiums for coverage…

Q: The accounting for extended warranties is similar to accounting for: O depreciation. O bad debts. O…

A: Introduction:- Extended Warranty is the warranty that company gives in addition to the normal…

Q: Describe the types of warranty.

A: Warranty: Estimated liability is an exact dollar amount of debt or obligation which is valued at a…

Q: Define Warranty Modeling?

A: It is necessary to ascertain entire lifecycle cost of a product, and this includes the costs related…

Q: When should the liability associated with a product warranty be recorded? Discuss.

A: Warranty: It is an agreement made by the company to provide guarantee against the defects in the…

Q: Define the term warranty expense.

A:

Q: What are the two types of warranties? Explain the accountingfor each type.

A:

Q: From a business's perspective, what is a warranty payment? Is it the same as a warrant payment or…

A: A warrant is a written order by one person instructing or authorizing another person to pay a…

Q: Define Extended warranties.

A: Warranty Warranty is assurance provided to a customer by a seller. It is provided against the…

Q: What is a guarantee? How can a guarantee be revoked or discharged

A: The guarantee represents the contract that the guarantor will perform the promise and discharge the…

Q: a.Determining the level of provision for warranty

A: "A". Determining the level of  provision for warranty Explanation Manufacturering companies often…

Q: When should the liability associated with a product warranty be recorded?

A:

Q: estimated warranty liability

A: Estimated warranty liability = Sales * Estimated percentage of warranty

Q: When do businesses record warranty expense, and why?

A: Warranty:  It is an agreement made by the company to provide guarantee against the defects in the…

Q: What is a promissory note, and what are some terms that arenormally included in promissory notes?

A: SOLUTION:- A promissory note is a instrument where one person or party promises(the note's issuer)…

Q: The party to whom the payment is to be made in a promissory note The party making the promise to pay…

A: Solution: Promissory note is an instrument in which one party gives a written promises to another…

Q: What is a promissory note, and what terms are normally included in promissorynotes?

A: A document or agreement that promises the payment of a specific sum of money at a later date to the…

Q: What is meant by a promissory note?

A: The amount due to be paid for loan can be promissed by customer by issuing promissory note.

Q: How is certificate of deposit beneficial?

A: A certificates of deposit basically are a sort of the financial savings account that holds a sure…

Q: Explain Special Warranty Deed?

A: Special Warranty Deed: A special warranty deed is a steadfast property deed in which the property…

Q: Define the term warranty.

A: A warranty is a type of guarantee that a manufacturer or similar party makes with regard to the…

Q: Warranty liability is an estimate based on past warranty claims. How might a company determine how…

A: Warranty Liability  MEANING : A warranty is a guarantee that a company will replace or fix a…

Q: What are the two possible methods for reporting EPS when warrants and convertiblesare outstanding?

A: Following are the two possible methods for reporting EPS when warrants and convertibles are…

Q: Endorsement

A: Introduction: The process of signing at the back of a check when it is received from someone before…

Q: What is the relationship of the promissory note between the maker and the payee?

A: A note of hand can be a financial instrument that contains a written promise by one party (the…

Q: 53. Which type of warranty is/are accounted for as a separate performance obligation: 1- A normal…

A: As per IFRS 15, Revenue Recognition standard If customer  has option to purchase warranty separately…

Q: What are the features of warrants?

A: Warranty Liability: Estimated liability is an exact dollar amount of debt or obligation which is…