【单选题】A company has a provision for warranty claims b/f of $3500. It does a review and decides that the provision needed in future should be $3000. What is the effect on the financial statements?
A.
Income statement increase expense by $500; Statement of financial position shows provision $3500
B.
Income statement increase expense by $500; Statement of financial position shows provision $3000
C.
Income statement decrease expense by $500; Statement of financial position shows provision $3500
D.
Income statement decrease expense by $500; Statement of financial position shows provision $3000
【简答题】A company has a provision for warranty claims b/f of $50,000. It does a review and decides that theprovision needed in future should be $45,000. What is the effect on the financial statements?A. Incre...