Warranties That Specifically State the Bounds of Coverage And,more Important,areas

question 137

Multiple Choice

Warranties that specifically state the bounds of coverage and,more important,areas of noncoverage are referred to as ________ warranties.

• A)express
• B)functional
• C)explicit
• D)limited-coverage
• E)implied

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Definitions:

Material Departure

A significant deviation or divergence from expected, customary, or defined standards or practices, often in financial reporting or auditing.

SEC

The Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.

Accounting Principles

Accounting principles are the rules and guidelines that companies must follow when reporting financial data.

Private-Sector Organizations

Businesses and corporations owned by individuals or groups in the private sector, not controlled by the government.