57. Under the New York General Business Law, which of the following is NOT an implied warranty in all contracts of sale for new housing a five-year warranty for Interior finished surfaces a six-year warranty covering material defects a one-year builder's warranty against defects in construction a two-year warranty for all plumbing, electrical, heating and air conditioning systems

57. Under the New York General Business Law, which of the following is NOT an implied warranty in all contracts of sale for new housing a five-year warranty for Interior finished surfaces a six-year warranty covering material defects a one-year builder's warranty against defects in construction a two-year warranty for all plumbing, electrical, heating and air conditioning systems

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1MC: Which of the following is not considered a current liability? A. Accounts Payable B. Unearned...

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15. If an entity gives a product warranty that has been issued directly by a manufacturer, dealer or retailer, which IFRS is likely to cover this warranty? a. IAS 32 Financial instruments - Presentation b. IAS 37 Provisions, contingent liabilities and contingent assets c. IFRS 17 Insurance contracts d. IFRS 9 Financial instruments 16. IFRS 17 provides that insurance contracts should a. Be covered by IAS 32 and IFRS 9 b. Comply with all existing IFRS c. Generally continue to be subject to existing accounting policies. d. Comply with the IFRS Framework document. 17. An insurance contract can contain both deposit and insurance elements. An example might be a reinsurance contract where the cedant receives a repayment of the premiums at a future date if there are no claims under the contract. Effectively this constitutes a loan by the cedant that will be repaid in the future. IFRS 17 requires that a. Each payment by the cedant is accounted for as loan advance and as payment for insurance…
19. Which of the following best describes the accounting for assurance-type warranty costs? * a. Expensed when paid. b. Expensed when warranty claims are certain. c. Expensed based on estimate in year of sale. d. Expensed when incurred.
Statement 1: Under IFRS 15, if the warranty is base on agreed-upon specifications, warranty expense is recognize in the period in which the expenditure is done.Statement 2: Under IFRS 15, if warranties provide service other than agreed-upon specifications ( the customer has the option to buy the warranty separately), the warranty is accounted for as a distinct service and is considered a separate performance obligation. Both statements are correct. None of the statements is correct. Only statement 1 is correct. Only statement 2 is correct.
3344 An insured who wants to verify the deductible on Section I of their Homeowners policy should look at which of the following sections of the policy? a. declarations b. insuring agreements c. conditions d. limitations
18. Accounting for product warranty costs under an assurance-type warranty * a. is required for income tax purposes. b. is frequently justified on the basis of expediency when warranty costs are immaterial. c. charges an expense account when the seller performs in compliance with the warranty. d. represents accepted practice and should be used whenever the warranty is an integral and inseparable part of the sale.
Questions: 1. What amount of warranty expense would be charge against 2021 revenue? 2. What amount of warranty liability would appear in the December 31, 2021 statement of financial position?
5. An entity classifies the obligation as non-current if an entity expects, and has the discretion, to refinance or rollover an obligation for at least twelve months after the reporting period under an existing loan facility, even if it would otherwise be due within a shorter period. Select one: True or False
1. What amount of warranty expense would be charged against 2021 revenue? 2. What amount of warranty liability would appear in the December 31, 2021 statement of financial position?
Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required:Determine the specific citation for accounting for each of the following items:1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed.2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities.3. Accounting for the revenue from separately priced extended warranty contracts.4. The criteria to determine if an employer must accrue a liability for vacation pay
15. The expense warranty accrual method a. violates the matching conceptb. requires recognition in the period of sale of the estimated warranty expense and warrantyliabilityc. separates accounting for two components of the sales price: the price of the product andthe price of the warrantyd. debits warranty costs to expense in the period when warranty expenditures are made
Statement 1: Under an assurance-type warranty, companies charge warranty costs only to the period in which they comply with the warranty. Statement 2: For purposes of recognizing a provision, “probable” is defined as more likely than not. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect.
In accounting for lease contracts, companies reporting under U.S. GAAP are required to treat the cash payments as "rent expense" if the contract is for 24 months or less. O do not need to capitalize the leased right-to-use asset if the contract is deemed immaterial. O have the discretion to classify the cash payments as "rent expense". O have to disclose every detail of the contract in the footnotes to the financial statements.