Which of the Following Is True of Express Warranties

question 29

Multiple Choice

Which of the following is true of express warranties?

• A) A manufacturer is liable for express warranties made by wholesalers.
• B) A retailer is liable for the express warranties made by manufacturers of goods it sells.
• C) A retailer is not allowed to make warranties on manufacturer goods.
• D) A manufacturer is obligated by law to make an express warranty on all its goods.

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Definitions:

Net Income

The profit a company retains after deducting all costs, taxes, and expenses from its total revenue.

Time Devoted

The amount of time spent on a specific activity or task.

Liquidating Partnership

The process of dissolving a business partnership by selling off assets to pay liabilities and distributing the remaining assets to the partners.

Capital Account Balances

The amount recorded in the financial statements of an entity that represents the funds contributed by owners or partners, including retained earnings and additional paid-in capital.