Which of the Following Is NOT a Requirement in Order

question 60

Multiple Choice

Which of the following is NOT a requirement in order for goods to be merchantable?

• A) That goods must pass without objection in the trade or market for similar goods.
• B) That goods must be fit for the ordinary purposes for which such goods are used.
• C) That goods must be adequately contained, packaged, and labeled as the agreement may require.
• D) That goods must conform to the promises or affirmations made on the container or label, if any.
• E) That goods must be sold without variation.

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Definitions:

Cumulative Earnings

The total amount of profit a company has earned over a specific period, often used to assess profitability trends.

Inception

The beginning point or establishment of an activity, agreement, or document.

U.S.GAAP

The collection of authoritative standards and principles for financial accounting and reporting in the United States, established by the Financial Accounting Standards Board.

IFRS

International Financial Reporting Standards; a set of accounting standards developed by the International Accounting Standards Board (IASB) aiming at standardizing financial reporting across the globe.