1. For financial reporting purposes estimated warranty liability and related warranty expense

a.            Are not reported in the financial statements

b.            Must be classified as long-term

c.             Are accounted for retrospectively

d.            Are accounted for prospectively 

2. Before you can perform the analysis of the 20X9 warranty account the first worksheet entry you must complete is

a.            To enter cost of goods sold adjustment #1 and #2

b.            To enter the appropriate percentage based on analysis

c.             To enter the warranty claims as a percent of cost of goods sold

d.            To change all the formulas that show calculation errors

3. The cost of goods sold balance after adjustments is

a.            $231,157,214

b.            $544,000

c.             $227,800,000

d.            It is not possible to compute this balance after adjustments

4. The amount of warranty claims filed by customers for 20X9 is

a.            1,455,000

b.            830,883

c.             560,000

d.            1,999,000