Which of the Following Statements Is NOT True

question 28

Multiple Choice

Which of the following statements is NOT true?

• A)A manufacturer's duty towards consumers continues after it places a product on the market.
• B)A retailer may be liable to the consumer for a defective product.
• C)After a manufacturer places a product on the market,its duty towards consumers ends.
• D)A manufacturer's duty to warn its customers may be discharged if the warning is issued to a learned intermediary.
• E)A manufacturer who places a defective product on the market may be liable for negligence.

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Definitions:

Closing Entries

Accounting journal entries made at the end of an accounting period to transfer temporary accounts' balances to permanent accounts, thus preparing the books for the next period.

Accounting Cycle

The process of recording and processing all financial transactions of a company, from when the transaction occurs, to its representation in the financial statements, followed by closure of accounts.

Work Sheet

A document used by accountants to prepare adjusting entries and to draft a company's financial statements.

Accounting Cycle

The accounting cycle is a step-by-step process of recording, classifying, and summarizing financial transactions of a business to provide an accurate picture of its financial position and performance.