13.

The cost of a product warranty should be included as an expense in the

a. future period when the cost of repairing the product is paid.

b. period of the sale of the product.

c. future period when the product is repaired or replaced.

d. period the cash is collected for a product sold on account.

14.

A contingent liability that is probable and for which the dollar amount can be estimated

a. should be disclosed only.

b. requires no treatment.

c. should be recorded only.

d. should be recorded and disclosed.