To Revoke Acceptance of Goods

question 42

Multiple Choice

To revoke acceptance of goods:

• A) any defect or nonconformity must be discovered.
• B) the goods must be dangerously defective.
• C) the nonconformity must substantially impair the value of the goods.
• D) action must be taken by the buyer within 60 days of delivery.

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Definitions:

Perpetual Inventory System

An accounting method that records inventory transactions in real-time, allowing for continuous tracking of inventory levels.

Purchases

Refers to the buying of goods and services by a business for use or sale.

Gross Profit

The financial metric representing the difference between revenues and the cost of goods sold, before deducting administrative and other expenses.

Operating Expenses

Expenses incurred through normal business operations, excluding costs related to production or manufacturing.