Which of the Following Is True About Express Warranties

question 52

Multiple Choice

Which of the following is true about express warranties?

• A)A manufacturer is liable for express warranties made by wholesalers.
• B)A retailer is liable for the express warranties made by manufacturers of goods it sells.
• C)A retailer is not allowed to make warranties on manufacturer goods.
• D)A manufacturer is obligated by law to make an express warranty on all its goods.

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Definitions:

Historical Cost

The original monetary value of an asset or investment at the time of its acquisition.

Market Value

The current price at which an asset or service can be bought or sold in a vibrant market.

Financial Position

A snapshot of the resources, liabilities, and equity of an entity at a specific point in time, illustrating its economic standing.

Cash Flow From Assets

The total amount of money being transferred in and out of a company's operations, investments, and financing, specifically relating to its assets.