Indicate whether each of the following statements is true or false.________ a) The amount of warranty expense is an estimate that is based on the amount of merchandise sold.________ b) A warranty obligation only occurs if a buyer purchases an extended warranty.________ c) When a warranty claim is settled, the seller's equity decreases.________ d) When a warranty claim is settled, the seller's liabilities increase.________ e) Product warranties usually represent legal liabilities that must be reported in the financial statements.
What will be an ideal response?
a) T b) F c) F d) F e) T
a) This is true. Warranty expense is generally estimated as a percentage of sales.
b) This is false. A warranty obligation occurs whenever a warranty is offered, whether the customer pays extra or not.
c) This is false. When a warranty claim is settled, the related entry decreases assets (cash) and liabilities (warranties payable). It does not affect expenses, net income, or stockholders' equity.
d) This is false. Settling a warranty claim decreases assets (cash) and liabilities (warranties payable).
e) This is true. Although the amount and timing of warranty obligations are uncertain, warranties usually represent liabilities that must be reported in the financial statements.
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Answer the following statement true (T) or false (F)
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A. Reinforce stereotypes of unions made up of greedy and lazy workers that engage in frequent and violent strikes. B. Portray union workers as hard-working, self-sacrificing employees. C. Provide a balanced view of workers and the organizations they work for. D. Reinforce stereotypes of unions as champions of "the little guy," looking for social justice and workplace representation.
Which of the following performance goals is SMAART?
a. Meet with at least two customers per day on sales-related calls and record your results in the database by the end of business each Friday b. Meet with two or three customers per day c. Provide sales support to customers and record your work in the database d. None of the above
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A. sustain the company's marketing program. B. cause a change in the engineering plans for a product. C. maintain the plant's production capacity. D. support the research and development process.