The Principle of Caveat Emptor Applies Only to Situations Where

question 60

Multiple Choice

The principle of caveat emptor applies only to situations where

• A)the seller has made no misrepresentation about the goods.
• B)the goods can be inspected by the buyer.
• C)the goods are specific items.
• D)the goods are in existence.
• E)all of the above

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

May

The fifth month of the Julian and Gregorian calendars, often used in financial and operational planning calendars.

Cash Receipts

The total amount of cash collected by a business during a specific period.

December

The twelfth and final month of the year in the Gregorian calendar.