Which of the Following Statements Could Create an Express Warranty

question 15

Multiple Choice

Which of the following statements could create an express warranty?

• A) "This is the best car available in town."
• B) "This motorcycle will double in value in the next ten years."
• C) "These tires have 10,000 miles on them."
• D) "This antique is quite a bargain."

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenues.

Written Off

Refers to the accounting action of declaring that a portion of a debt or asset value is considered uncollectable or worthless.

Uncollectibles

Accounts receivable that are recognized as not being collectible, representing losses to the company.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables on the balance sheet by an amount estimated to be uncollectible.