Kevin Delivers to Zach Nonconforming Goods

question 51

Multiple Choice

Kevin delivers to Zach nonconforming goods. Zach accepts, but later discovers the defect and rightfully revokes acceptance. If the goods are destroyed through no fault of Kevin or Zach:

• A) if Zach's insurance is adequate, it will cover the loss and Kevin would not bear any of the loss.
• B) Kevin would bear the loss of these nonconforming goods, whether or not Zach has insurance.
• C) Zach will bear the loss, whether he has insurance or not.
• D) Kevin and Zach will equally share the loss.

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Definitions:

Financial Accounting

The phase of accounting concerned with providing information to stockholders, creditors, and others outside the organization.

Feasibility Analysis

An assessment of the practicality and potential success of a proposed business idea or project.

Maximum Daily Production

The highest quantity of goods or services a company can produce in a single day under normal operating conditions.

Managerial Accounting

The phase of accounting concerned with providing information to managers for use within the organization.