Question

Why are warranty liabilities usually recognized on the balance sheet as liabilities even when they are uncertain?

Answer 1

Solution:

This is for the most part because of judiciousness idea.

The judiciousness idea expect bookkeeper to practice alert in bookkeeping gauges.

An arrangement for guarantee liabilities is required in light of the fact that it is a present commitment coming about because of past occasion, from which there will be an outpouring of future financial profit by the element.

Since it is a future obligation, we will remember it to be determined sheet as long as it is plausible that this will happen.