Warranties Which Assign Responsibility for Product Deficiencies to the Manufacturer

question 114

Multiple Choice

Warranties which assign responsibility for product deficiencies to the manufacturer are most correctly called_________ warranties.

• A)implied
• B)limited-coverage
• C)technical
• D)strict-liability

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Definitions:

Accounts Receivable

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

Capital

Assets of monetary value, like cash and merchandise, employed by a business for the creation of goods or services.

Cash

Currency and coins, plus bank balances, that are readily available for use in transactions and other financial operations.

Income Statement

A financial statement that shows a company's revenue and expenses over a particular period, illustrating how net income or net loss was achieved.