Warranty Obligations
type: Class
preferred label: Warranty Liability
subclass of: R8Gt68Hspze0zsEdYzUS2Fq
definition: Warranty Obligations, also known as Warranty Liabilities, are commitments made by a company to repair, replace, or refund products that are found to be defective within a specified period. These obligations are recognized as a liability on the company's balance sheet, and an expense is recorded in the income statement to match the estimated future costs of honoring the warranties.