A firm is required to estimate a liability for repairs for products sold with a warranty. If the firm's accountants later find that the estimated amount for repairs has been overstated, the correct accounting procedure is to
a. make an adjusting entry to reduce the amount of estimate.
b. make a correcting entry because the overstatement is an error.
c. show the amount of overstatement on the income statement as a loss.
d. do nothing for the year in question and modify the next year's estimate.
d
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Which of the following financing activities results in a cash inflow?
a. Buying treasury stock b. Issuing bonds c. Repaying a bank loan d. Paying cash dividends
A salesperson's being honest in assessing a product's use, features, and benefits can reduce consumers' _____
a. social cues b. commercial cues c. cognitive dissonance d. physical drives
Conducting pilot test of a survey instrument involving a small group of the population can
a. correct problems in clarity, ease of answering, and quality of answers. b. complicate the clarification of questions developed for a larger sample group. c. be a better alternative to the use of open-ended questions. d. use information from biased sources and correlate it to unbiased sources.
What does it mean to use "vivid language"?