Warranty liability refers to the potential future costs a company may incur due to the warranty services promised to customers on its products or services.

Warranty liability refers to possible future costs a company might face from warranty services on its products.

What does "warranty liability" mean? Warranty liability is the obligation a company has to cover repair or replacement costs under a product warranty.

What is warranty liability classified as? Warranty liability is classified as a contingent liability on a company`s balance sheet.

What is an assurance warranty? An assurance warranty guarantees that a product will meet certain quality and performance standards for a set time.

QuickBooks, Xero

Warranty liability reflects potential future costs related to warranty services on products.

Warranty liability accounts for future costs related to product warranty services.