A Computer Dealer Induced a Finance Company to Enter into a Hire-Purchase

question 43

Multiple Choice

A computer dealer induced a finance company to enter into a hire-purchase agreement by contributing false information about the amount of deposit paid by the customer unknowingly, who later defaulted and sold the computer to a third party. This is an example of:

• A) misuse of relationship marketing.
• B) sales puffery.
• C) a warranty of fact.
• D) misrepresentation.
• E) a statement of fact.

---

Definitions:

Adjusting Entry

An accounting entry made into a journal at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Property Tax

A tax assessed on real estate by the local government and based on the property's value.

Adjusting Journal Entry

A journal record used to adjust the balances in various ledger accounts to more accurately reflect income and expenses for the period.

Supplies Account

An account that tracks the cost of supplies not yet used by a business.