Which of the Following Is Not One of the Warranties

question 21

Multiple Choice

Which of the following is not one of the warranties involved under strict products liability?

• A) Express warranty
• B) Implied warranty of merchantability
• C) Implied warranty of fitness for a particular purpose
• D) None of these choices.

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Definitions:

Control Account

An account used to summarize transactions recorded in subsidiary ledgers for a comprehensive total in the general ledger.

Predetermined Overhead Rate

A calculated rate used to estimate the manufacturing overhead cost per unit of production, based on expected costs and activity levels.

Manufacturing Overhead

Indirect factory-related costs that occur from manufacturing a product such as the cost of managing a factory.

Accumulated Depreciation

The total amount of depreciation expense that has been charged against a fixed asset since it was put into use.