To Create an Express Warranty, a Seller or Lessor Must

question 34

True/False

To create an express warranty, a seller or lessor must state that he or she has a specific intention to make a warranty.

---

Definitions:

Capital Lease

A leasing arrangement that allows a lessee to record the leased asset as their own in their financial statements because it effectively transfers nearly all risks and rewards of ownership.

Lease Obligation

A financial commitment that a lessee is required to make under the terms of a lease, typically involving regular payments over a specified period.

Financial Reporting

The process of disclosing financial information and statements to the external users to help them make informed decisions about investing in or lending to the company.