Warranties Should Be Accrued If It Is

Multiple Choice

Warranties should be accrued if it is

A) probable that an expense has been incurred and the amount is reasonably estimable.
B) possible that an expense has been incurred regardless of whether the amount is estimable or not.
C) possible that an expense will be incurred and the amount is reasonably estimable.
D) remote that any expense has been incurred.