Use of the Accrual Method in Accounting for Product Warranty

Multiple Choice

Use of the accrual method in accounting for product warranty costs

A) is required for federal income tax purposes.
B) is frequently justified on the basis of expediency when warranty costs are immaterial.
C) finds the expense account being charged 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.