MA
Answered
Explain the deficiencies in accounting for warranty costs under the modified cash basis.
On Jun 02, 2024
The modified cash basis fails to match warranty expenses against the related revenues.This is a significant problem when the warranty period is long and many of the claims occur in accounting periods subsequent to the period of sale.Additionally, the failure to accrue the estimated warranty costs causes an understatement of liabilities associated with the estimate of future claims costs.
MA
Answered
What are some criteria you can use in evaluating the credibility of an information source?
On Apr 30, 2024
In evaluating the credibility of sources,it is important to determine whether the source has a reputation for honesty and reliability.You should also be sensitive to any potential bias in the source.Knowing the purpose of the source can help you decide whether it is appropriate for your project.You should also find out whether the author is credible and where he or she got the information included in the source.Another important issue is whether you can verify the material independently.You should also check to make sure that the material is current and complete,and that all claims are supported with evidence.Finally,it is important to see how well the source's claims stand up to scrutiny.