Wheels Inc

question 48

Multiple Choice

Wheels Inc. sells new and used bicycles. Under most circumstances, Wheels will be presumed to have warranted that its title to the bikes is

• A) the same as the manufacturer's or previous owner's.
• B) none of the choices-a warranty of title is not presumed.
• C) good and valid.
• D) the best that money can buy.

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Definitions:

Net Income

A company's total earnings or profit, calculated as revenue minus expenses, taxes, and costs.

FOB Destination

A shipping term indicating that the seller is responsible for the goods until they are delivered to the buyer's specified location, whereupon title and risk of loss pass to the buyer.

Revenue Recognition

The accounting principle dictating the specific conditions under which revenue is recognized or recorded.