ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 275

17. Under the expense warranty approach, companies charge
warranty costs only to the period in which they comply with the
warranty.

18. Prepaid insurance should be included in the numerator
when computing the acid-test (quick) ratio.

19. Paying a current liability with cash will always reduce the
current ratio.