The Following Information Is for Acme Auto Supplies

question 26

Multiple Choice

The following information is for Acme Auto Supplies:

The total dollar amount of assets to be classified as property, plant, and equipment is

• A) $ 315,000
• B) $ 245,000
• C) $ 165,000
• D) $ 195,000

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Definitions:

Express Warranty

A written guarantee provided by a seller about the quality or nature of a product, promising specific standards or conditions.

Implied Warranty

A legal assumption in commerce that goods are reasonably fit for the general purpose for which they are sold, even if not expressly stated.

Operation of Law

A way in which rights or liabilities are automatically transferred or changed due to existing legal rules, rather than the action of the parties.

Implied Warranty

An unwritten and unspoken guarantee that a product or service will meet a minimum level of quality and will perform as expected, even though it is not explicitly stated in a contract.