What is the gaap treatment of warranty claims

Assignment Help Financial Management
Reference no: EM131623991

The general manager of an electronic goods manufacturer is of the view that warranty liabilities should only be recognised when a warranty claim is made. What is the GAAP treatment of warranty claims and is this consistent with generally accepted accounting principles? (max 100 words)

Reference no: EM131623991

Questions Cloud

Prepare the journal entry for the transfer of the costs : Castillo Company has three departments: Mixing, Bottling, and Packaging. Prepare the journal entry for the transfer of the costs from Mixing to Bottling
Define target the appropriate professional audience : Demonstrate understanding of the basic fundamentals of communication. Target the appropriate professional audience
Find the full payments required-size of concluding payment : Find the number of full payments required and the size of the concluding payment.
Calculate the equivalent units of production : Calculate the equivalent units of production for direct materials and conversion costs
What is the gaap treatment of warranty claims : What is the GAAP treatment of warranty claims and is this consistent with generally accepted accounting principles?
For how much in us dollar can erin sell her bmw shares today : Erin McQueen purchased 50 shares of BMW, a German stock traded on the Frankfurt Exchange, for €64.5 (euros) per share exactly one year ago.
Most important aspect of personal financial planning : Taxes are probably the most important aspect of personal financial planning.
Determine the equilibrium quantity and price : Determine the quantity demanded and quantity supplied - Determine the equilibrium quantity and price.
Define big data and its business impacts : Strategic importance of cloud computing in business organizations

Reviews

Write a Review

Financial Management Questions & Answers

  What is now your effective interest rate

If you’re average daily balance on your credit card in June is $1,200 and your APR is 18%, how much interest do you pay the next billing cycle? If you also incurred a $29 late charge, what is now your effective interest rate?

  Monthly payment will go toward the repayment of principal

What percentage of the 2nd monthly payment will go toward the repayment of principal?

  Use of gis-data mining in public health in innovative ways

What is a GIS? How is GIS currently used to improve the practice of epidemiology? What is data mining? How is data mining currently used in epidemiology practice and research? How might developing Internet and Web technologies impact the use of GIS a..

  Solve their disagreements through bargaining

Why do states usually try to solve their disagreements through bargaining? War is a costly option that states would rather avoid if possible. States use the negotiation period to prepare surprise attacks against their opponents.

  Industries has two separate divisions

Swizer industries has two separate divisions. Division X has less risk so its projects are assigned a discount rate equal to the firm’s WACC minus 3 percent.

  How consumers make decisions whether or not to buy product

pply the categorization model to a product category other than beverages.- How do consumers make decisions whether or not to buy the product, and how do they arrive at their final brand decision?

  Compute the current market value of this bond

A bond was issued 3 years ago at a coupon rate of 6%. The bond matures 20 years from today. Compute the current market value of this bond.

  Comprehensive understanding of the financial environment

Compare and appraise theories that underlie current thinking in Corporate Finance and Investment, demonstrate and evaluate how these theories can be applied in practical situations,

  Estimate taylors cost of capital or required rate of return

Estimate Taylor's cost of capital or required rate of return. You may use book values in your calculations. Assume the existing capital structure is optimal and ignore preferred stock. The relevant tax rate is 40 percent.

  How much is the lump-sum payment

how much is the lump-sum payment if an interest rate of 10% compounded annually is used?

  The entry to record issuance of the bonds

The bonds are dated June 1, 2011. The bonds were issued at 96, and pay interest on December 1 and June 1. The entry to record issuance of the bonds is:

  What is the current market price of bonds-current yield

Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 12%. The bonds have a yield to maturity of 8%. What is the current market price of these bon..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd