A Quality-Assurance Warranty Typically Results in the Seller

Multiple Choice

A quality-assurance warranty typically results in the seller:

A) Accruing an expense for anticipated warranty costs at the time the warrantied product is sold.
B) Recognizing an asset for accrued warranty costs which is amortized over the life of the warranty.
C) Recognizing revenue over the life of the extended warranty.
D) Refunding warranty payments upon expiration of the warranty.