Which of the Following Must Be Met in Every Instance

question 127

Multiple Choice

Which of the following must be met in every instance in order to revoke an acceptance of goods?

• A) The seller must have fully paid for the goods prior to revocation.
• B) The seller's promise to cure the nonconformity has not been met.
• C) The goods were accepted before discovery of the nonconformity and the nonconformity was one that was difficult to discover.
• D) The goods were accepted before discovery of the nonconformity and the seller had assured the buyer that the goods were conforming.
• E) The nonconformity is one that substantially impairs the value of the goods.

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Definitions:

Cash Coverage Ratio

This is a measure of a company's ability to cover its debt obligations with its available cash and cash equivalents.

Interest Expenses

The cost incurred by an entity for borrowed funds over a period, usually expressed in monetary terms.

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax, varying by country and sometimes by the size or type of business.

Enterprise Multiple

A ratio used to determine the value of a company that takes into account its debt and equity, calculated by dividing the enterprise value by EBITDA.