Every expense accrual, including payroll, has the same effect: ____________________ and __________________________ because of the expense.

When is a company required to record warranty expense?

in the same period sales are made if there is probability that warranty will be exercised, and the amount of the warranty expenses could be estimated

Part V: Account for contingent liabilities

A contingent liability is a potential liability that depends on the _________________ outcome of _________ events.

Part VI: Account for bonds payable and interest expense with straight-line amortization

______________________________ are groups of debt securities issued to multiple lenders, called bondholders.