17. Which of the following is a characteristic of a current liability but not a non-current liability? A. Unavoidable obligation. B. Present obligation that entails settlement by probable future transfer or use of cash, goods, or services. C. Settlement is expected within the normal operating cycle, or within 12 months after the reporting date. D. Transaction or other event creating the liability has already occurred.

18. During 2015, Stabler Co. introduced a new line of machinesthat carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: Sales Actual Warranty Expenditures 2014 $ 400,000 $ 6,000 2015 1,000,000 30,000 2016 1,400,000 90,000 $2,800,000 $126,000 What amount should Stabler report as a liability at December 31, 2016? A. $ 0 B. $ 136,000 C. $ 185,000 D. $ 210,000

19. What is a characteristic of managerial accounting from the view of the comparison of financial and managerial accounting? A. Reporting to those outside the organization B. Emphasizing objectivity C. Following GAAP(Generally accepted accounting principle) D. Emphasizing relevance

20. Any cost is not be relevant in managerial decisions. What is the cost? A. Sunk cost B. Differential cost C. Variable cost D. Incremental cost