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 matching principle requires that the expense of providing warranty needs to be allocated in the period of the sale, at the same time the gain of the sale is recognized. At the time of sale the firm expenses the expected cost of the warranty, which is added to the warranty liability.