Estimating future warranty expenses

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Reference no: EM13132729

The new management of YC Inc. has increased the amount of their year-end liability-expense accruals by over 35% compared to recent years, primarily in recording estimated future warranty expenses. The most likely reason for this action is to:

A) increase net income this year to make the new management look good.

B) make net income higher in future periods.

C) maximize their bonus (based on stock price appreciation) for the current year.

D) maximize their bonus (based on net income) for the current year.

Reference no: EM13132729

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