A Warranty Guarantees That

question 104

Multiple Choice

A warranty guarantees that

• A) the seller will replace or repair the product at no charge if the customer finds a cheaper substitute.
• B) the buyer has read and understood the information provided in the owner's manual.
• C) consumers will have access to a customer complaint resolution hot line.
• D) the product sold will be acceptable for the purpose for which the buyer intends to use it.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Current Liabilities

Obligations or debts a company is expected to settle within one fiscal year or its operating cycle, whichever is longer, including accounts payable and short-term loans.

Debt Guarantees

Debt guarantees refer to commitments made to pay back a loan or debt if the original borrower fails to do so, often provided by a third party.

Contingent Liabilities

Liabilities that may occur depending on the outcome of a future event.