Draw a t-account for the extended warranty liability

Reference no: EM131408166

Agilent Technologies, Inc., a diversified technology company, sells extended warranties for the products and services provided to customers, deferring the revenue until future recognition. The following information about the extended warranty liability account was taken from Agilent's annual report (dollars in millions):

REQUIRED:

a. Draw a T-account for the extended warranty liability, record the activity disclosed above in that account, and explain how the entries represent an application of the matching principle.

b. Explain how the cash flow for warranties is different from the profitability of warranties.

Reference no: EM131408166

Questions Cloud

Relationship between time and units in a process : What is the mathematical relationship between time and units in a process

Different types of safeguards for data : Determine why information security is so important in healthcare by analyzing at least two different types of safeguards for data and elaborate on what standards are looked at for each.

Determine whether the population means could be the same : Given the following data from three independent samples, use the 0.025 level in determining whether the population means could be the same.

Emergency management and mitigation : Who are the specific civic and community stakeholders that should take part in developing a mitigation plan and responding to emergencies? Subject: Emergency Management and Mitigation

Draw a t-account for the extended warranty liability : Draw a T-account for the extended warranty liability, record the activity disclosed above in that account, and explain how the entries represent an application of the matching principle.

Explaining the binocular an monocular cue to perceive depth : Explaining the binocular an monocular cue to perceive depth perception with your eyes.

How well you amalgamate the material : In this course, you will be presented with real life situations, which are to be analyzed and studied in order to gain a further understanding of their significance with regards to the course material.

How would the deferred revenues factor into the analysis : How do you think an analyst following the company would react to the above earnings announcement? How would the deferred revenues factor into the analysis?.

Whether three brands could have the same population mean : Using the 0.025 level of significance, determine whether the three brands could have the same population mean for this test object.

User Account

All Pages