C) $0 $700,000 BS $350,000 6) Which of the following best describes the accounting for assurance.type warranty costs? A) Expensed when incurred B) Expensed based on estimate in year of sale C) Expensed when warranty claims are certain D) Expensed when paid 7) Which of the following sets of conditions would give rise to the accrual of a contingency under current generally accepted accounting principles? A) Event is unusual in nature and occurrence of event is probable. B) Amount of loss is reasonably estimable and occurrence of event is probable. C) Event is unusual in nature and event occurs infrequently. D) Amount of loss is reasonably estimable and event occurs infrequently. 8) Which of the following may be a current liability? A) Deferred Revenue B) Withheld lcome Taxes C) Deposits Received from Customers D) All of these answers are correct. 9) Liabilities are A) deferred credits that are recognized and measured in conformity with generally accepted accounting principles. B) obligations arising from past transactions and payable in assets or services in the future. C) obligations to transfer ownership shares to other entities in the future. D) any accounts having credit balances after closing entries are made. CO