Warranties of Title Arise Automatically in Most Sales Contracts-A Thief

question 57

True/False

Warranties of title arise automatically in most sales contracts-a thief breaches the warranty by selling stolen goods.

---

Definitions:

Income Summary

An account in the ledger used to summarize revenues and expenses for a period, helping to determine the net income or loss.

Income Summary Account

A temporary ledger account used to summarize a period’s revenues and expenses before transferring the net result to the company's equity account(s).

Net Income

Net income is the total earnings of a company after subtracting all expenses, including taxes, interest, and operating expenses, from its total revenues.

Capital

Financial assets or the financial value of assets, such as cash and securities, owned by a business or individual, used for creating wealth or to engage in further production.