Question
Kaleb Carlson is the Vice-President of Finance at Wok & Roll, a manufacturer of pre-seasoned commercial woks. In Wok & Roll's annual report for FY
Kaleb Carlson is the Vice-President of Finance at Wok & Roll, a manufacturer of pre-seasoned commercial woks. In Wok & Roll's annual report for FY 2020, Mr. Carlson reported the following in a disclosure note to a financial statement:
"With respect to warranty expenses, Wok & Roll provides currently for the estimated cost of product warranties at the time the related revenue is recognized."
This note exemplifies Wok & Roll's use of:
(a) conservatism;
(b) the economic entity assumption principle;
(c) the matching principle;
(d) the matchmaking principle; or
(e) management discussion and analysis
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