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Which principle of accounting is best illustrated by the following scenario? A company sells a product that has a two-year warranty covering parts and labor.
Which principle of accounting is best illustrated by the following scenario?
| A company sells a product that has a two-year warranty covering parts and labor. In the same period that revenues from product sales are recorded, an estimate of future warranty costs is recorded as an expense. |
A. | Revenue recognition principle | |
B. | Materiality principle | |
C. | Cost principle | |
D. | Matching principle |
please answer asap
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