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Warranty is classified as current assets true or false?

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Question added by هيثم ناجى , محاسب اول , الفيوم لصناعة السكر
Date Posted: 2015/07/26
Badar Khan
by Badar Khan , Accounts cum administrative assistant , Al Qassimia Drivng Training Centre.Sharjah

if the company selling the products provide any warranty then in their accounts it will be treated as a liability

Deleted user
by Deleted user

False because warranty is reported under liability.

HARVEY TAC-AN
by HARVEY TAC-AN , Senior Accountant , STRONG BUILT (MINING) DEVELOPMENT CORPORATION

False.  Warranty is a liability.

Said Shaban
by Said Shaban , Accountant , Tri State Materials Testing

The answer is: False

A warranty creates a liability for the seller from the date of the sale to the end of the warranty period.