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Which contingent liability is normally accrued?
Usually accrued Loss related to: 1) collectibility of receivables 2) obligations related to product warranties and product defects 3) premiums offered to customers
Is income tax an estimated liability?
is income tax estimated liability
Are formal statements of expected product performance by the manufacturer?
Warranties
What is product liability?
"Product liability is a specific type of law. What it says is that basically, a product's maker or supplier has to be held accountable for any injuries that the specific product may cause."
Is estimated tax payable a current liability?
Yes, as tax is paid normally in next fiscal year so it is current liability and shown under current liability section
What is warranty obligations?
Warranty Obligations are estimated obligations arising out of a product warranties. Product warranties require the seller to correct any deficiencies in quantity, quality or performance of the product or service for a specific period of time after the sale.
Where do you File warranties in bookeeping?
Companies must accrue estimated warranty expenses. The journal entry to accrue the expenses is a debit to warranty expense, and a credit to an accrued warranty liability account. When warranties are paid the debit is to the warranty liability account and the credit is to the cash or bank account.
What is consumer liability?
Consumer liability, also known as product liability or strict product liability, is an area of civil law that provides remedies for consumers who are injured by a defective product. Under consumer liability, the company, supplier, and/or vendor of the defective product can be held liable for injuries caused to a consumer because of the defect. Consumer liability primarily deals with warranties, manufacturing and design defects, and issues related to inadequate warnings.
Which contingent liability is normally accrued?
Usually accrued Loss related to: 1) collectibility of receivables 2) obligations related to product warranties and product defects 3) premiums offered to customers
What are the differences between contingency and contingent liabilities?
Contingent liabilities are liabilities that might be incurred and the outcome is uncertain. They are recorded when the future events are probable to happen and the amount can be estimated reasonably. They include obligations related to product warranties. A contingency is an existing situation where there is uncertainty about possible loss or gain that will not be resolved in the near future.
Is income tax an estimated liability?
is income tax estimated liability
What type of insurance do you need if you are starting an auto warranty company To cover the warranty in case you go out of business.?
Product Liability and General Insurance Liability and surety bonds with the states you underwrite in. Florida is the hardest state to sell warranties in.
What is the liability for product warranty claims is an example of a liability that?
Product warranty claims liability is an example of a liability that arises from a company's obligation to repair or replace products that are defective or do not meet the terms of the warranty. This liability represents the estimated cost of fulfilling these warranty claims and is recorded on the company's balance sheet as a potential expense that may need to be incurred in the future.
WHAT do Software suppliers frequently write to attempt to limit their liability in the event of nonperformance?
Warranties
What type of attorney typically handle product liability claims?
The type of attorney that handles product liability claims is acatually a product liability attorney!
Is there a time limit on a warranty?
On most warranties, yes. There are also lifetime warranties set by the companies. It depends on the product and company.
Are warranties the same no matter what product your buy or who the manufacturer is?
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