The expense for warranty costs is recorded in the period​ ________.   A. when cash is paid to repair or replace the product   B. when the product is sold   C. when the product is repaired or replaced   D. when cash is collected from the sale of the product

Q: Which of the following situations may give rise to unearned revenue? Select one: a. Providing trade…

A: The Unearned revenue is the revenue not earned yet but has been received in cash for future service.…

Q: Which of the following statements are true? а. Revenue should be generally recognized when the…

A: According to the accrual basis of accounting, revenue is recognized when the performance is made.

Q: Warranty expenses result when a company sells products then estimates the units and cost per unit…

A: Estimation of future liability on the selling product is known as estimated warranty liability.…

Q: Statement 1: Assurance-type warranty refers to a warranty that the product meets agreed-upon…

A: In the given question whether the statements are correct or incorrect needs to be determined

Q: With the accrual basis of accounting, revenue from a credit sale is recognized Multiple Choice…

A: Accrual basis of accounting: Accrual basis of accounting refers to recognizing the expenses and…

Q: How will the lender of the promissory note record the note on its books? as an expense as revenue…

A: Revenue: This is the income of a firm during an accounting period. The income is recognized as and…

Q: when a company receives a deposit from a customer to protect itself against nonpayment for future…

A: Revenue is the amount of money created by typical business operations and is determined by…

Q: A credit balance to a client's accounts payable account representing right to receive payment for…

A: Liabilities are of two types current and noncurrent liabilities. Current liabilities are to be…

Q: Which of the following provides the best explanation for why warranty expense should be estimated…

A: Goods that are sold in a year can presented for warranty repair in upcoming years. But this warranty…

Q: The "principal" of a note receivable refers to: a.the amount of cash borrowed. b.the present value…

A: The principal amount of a note receivable is the amount of cash borrowed.

Q: Which of the following is an amount for products or services purchased on account? A)accounts…

A: Account payable is the account related to products or services purchased on account. Unearned…

Q: According to ASC 606, how should a referral credit be recorded in your financial statement, as a…

A: ASC-606 solely deals with the Concept of Revenue Recognition and in order to bring uniformity in…

Q: Which of the following liabilities is created when a company receives cash for services to be…

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: accordance with IFRS 15,  customer loyalty awards on the goods or services sold, the transaction…

A: As per IFRS 15, Revenue recognition  In case of sale of a product with loyalty awards,then the sales…

Q: When the amount of interest accrued shown in the adjustments, then it has to be: a. Deducted from…

A: Accrual system of accounting says that every thing which is accrued has to be provided in books of…

Q: what is the specific point in time when the consignor satisfies is performance obligation under…

A: Consignment represents the arrangement where the goods are sold to the buyer by a third party.

Q: If a company usually sells its accounts receivables, it recorda any factoring commissions as a(n)…

A: Factoring commission is paid to the factor/intermediary agent for taking over company's account…

Q: -It is used to who is responsible for paying shipping and when the title of the goods passes from…

A: When a Business transaction is executed, it is subjected to certain terms and conditions that govern…

Q: Money received from customers for products to be delivered in the future is recorded as: C . revenue…

A: Cash received from the customers will be considered as an asset. Whereas a liability will be created…

Q: When recognizing revenue, a company has a performance obligation when it agrees to receives cash…

A: Solution: When recognizing revenue, a company has a performance obligation when it agrees to…

Q: evenue is recognized for sold consignment goods when a. The consignee receives the goods b. When…

A: Solution: Revenue is recognized for sold consignment goods when "The goods are sold by the consignee…

Q: Which of the following is a liability created when a company receives cash for services to be…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: Which of the following situations may give rise to unearned revenue? O Providing trade credit to…

A: The Unearned revenue is the cash received feom customers but services would be provided in the…

Q: If a company sells its accounts receivables to a factor O a. there is a gain on the sale of the…

A: Solution: Factoring is a financial transaction thru which business sells its accounts receivables at…

Q: When recognizing revenue, a company has a performance obligation when it agrees to a. perform a…

A: A performance obligation is satisfied when the company delivered goods or performed services to…

Q: Question 36 is used to settle an obligation arising from purchase of goods or services as a…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Statement I. If the pattern of the repairs cannot be established and the obligation for warranty…

A:

Q: It is a receivable financing activity where the Entire Receivable's ownership is sold to the Factee…

A: Generally company makes credit sales and suffer the bad debts on some of the credit sales. To over…

Q: What is the amount to be collected by the business from customer who receive the product or services…

A: When a corporation purchases product on credit that must be paid back during a short amount of your…

Q: warranty with its product or service show an expense in the year of sale

A: Matching principle urges an entity to recognize expense , the period during which related revenue is…

Q: 1. Sales journal must contain the following: * A) Date, Name and Address of Buyer, Sales Invoice or…

A: Sales journal also known as sales day book records credit sales. Cash sales are recorded in the cash…

Q: it is urgent  A promise received from a business's customers to pay for goods and services that…

A: Introduction Sales may be defined as the activity of exchanging goods and services for money. It may…

Q: In the following liabilities, the payee is known, however, the amount may have to be estimated.…

A: provision should be created for all the certain liabilities

Q: The contra−revenue accounts​ include:   A. Sales Tax Payable.   B. Sales Returns and Allowances.…

A: Contra revenue: revenue account should have a credit balance but in contra revenue it has a debit…

Q: According to U.S. GAAP, when should revenue be recognized?a. When cash is received from the…

A: Revenue: It refers to money earned by the business from selling its goods and services to the…

Q: In Promissory note, Maker is the person who. a. Receives the payment b. Makes the sales c. Makes…

A: A promissory note is a shred of documentary evidence in which one party makes the promise to another…

Q: t is an amount owed to suppliers for goods purchased or services performed on credit. a. Outstanding…

A: Account payables means the amount owed by business to outsider for the goods received and services…

Q: All of the following statements related to recording warranty expense are true except: Top of Form…

A: As per the accrual basis warranty expenses should be recognized in the same period, in which revenue…

Q: B. Record the entry for acceptance of promissory note in exchange of accounts receivable from…

A: Introduction: A journal entry is a recording of a commercial transaction in the accounting system of…

Q: A can defined as a partial payment remunerated as an advance on the sales person's commission. O a.…

A: Charge account:- It is an arrangement where one person can purchase products or services on credit.…

Q: _____ is the example of Liabilities.     Sales     Supplies in Hand     Account Receivables…

A: The Question has covered the concept of Liabilities. Liability means which have an obligation to…

Q: The recording of a product warranty expense in the year the merchandise under warranty is sold is…

A: The recording of a product warranty expense in the year the merchandise under warranty is sold is…

Q: All of the following statements related to recording warranty expense are true except:   Multiple…

A: As per the accrual basis warranty expenses should be recognized in the same period, in which revenue…

Q: The expense for warranty costs is recorded in the period​ ________

A: The Answer

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.