Since ancient times, stringed instruments, known as chordophones, have developed to all shapes and sizes. These instruments make sounds by vibrating strings. The strings may be played with a bow, plucked with fingers, or struck with hammers. Nearly all chordophones are made up of strings stretched across a resonator.
Warranty expense. Warranty expense is an example of a situation when taxes payable are greater than income tax expense because on the income statement statment estimated warranty expense is deductible and on the tax return only actual warranty expenses are deductible. Iâm trying to understand that through an example.
The use of the warranty liability is similar in nature as the allowance for uncollectible accounts. The warranty liability is about the risk in the products sold, whereas the allowance for uncollectible accounts is about the risk of non-payment by customers. The main difference between the two is that the warranty liability is a liability, whereas the allowance for uncollectible accounts is a correction on an asset.