The liability for product warranty claims is an example of a liability that:

a) has been calculated using estimates.

b) has been recorded in the process of matching revenue and expense.

c) also resulted in a reduction of net income

d) all of these answers are correct.

The net book value of buildings increased by $170,000 during the year. No buildings were sold during the year, and depreciation expense for the year was $55,000. How much cash was paid to purchase buildings during the year?

a) $55,000

b)$170,000

c) $225,000

d) $115,000

The liability for product warranty claims is an example of a liability that:

a) has been calculating using estimates.

b) has been recorded in the process of matching revenue and expense.

c) also resulted in a reduction of net income.

d) all of these answers are correct.