alleryStart learning →Provision for product warranty costs is recognised in which period?
APeriod of claim
BPeriod of payment
CPeriod of audit
DPeriod of the sale
Answer & Solution
Correct answer: D. Period of the sale
Provision recognises the costs in the same accounting period in which the related sales transactions took place.
Keep practising AS 4 Contingencies and Events Occurring After the Balance Sheet Date
Browse all AS 4 Contingencies and Events Occurring After the Balance Sheet Date questions for CA Inter, or explore more Accounting topics.
Related questions
Contingencies in AS 4 are restricted to conditions existing at which date?Which accounting principle supports providing for a likely contingent loss?Besides its nature, what must be given about a post-year-end event reported by the approviAn event unrelated to conditions at the balance sheet date generally leads to what?A post-year-end event gives further evidence of year-end conditions. What usually follows?Which events are covered as events after the balance sheet date?A contingent liability is matched by a claim on a third party. The provision considers whaLiabilities on policies issued by which enterprises are excluded from AS 4?