Warranties Should Be Accrued If It Is

question 90

Multiple Choice

Warranties should be accrued if it is

• A)probable that an expense has been incurred and the amount is reasonably estimable.
• B)possible that an expense has been incurred regardless of whether the amount is estimable or not.
• C)possible that an expense will be incurred and the amount is reasonably estimable.
• D)remote that any expense has been incurred.

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Definitions:

Equal Bargaining Power

The situation in which all parties involved in a negotiation or agreement have similar negotiating strength and no one side has undue influence over the other.

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though the parties involved did not enter into a contractual agreement.

Restitution

A legal principle requiring a party to return or compensate for any loss or harm they have caused to another.

Oral Agrees

Agreements or contracts made through spoken communication rather than written, subject to certain legal limitations.