A Transferor Makes Certain Implied Warranties to the Transferee When

question 29

Multiple Choice

A transferor makes certain implied warranties to the transferee when a bill of lading is transferred.These warranties are:

• A) that the bill of lading is genuine.
• B) that the transfer is rightful.
• C) that the transferor has no knowledge of any defects.
• D) all of the above.

---

Definitions:

Freight-out

The cost associated with transporting goods from the seller to the buyer, usually considered a selling expense.

Purchase Returns

Goods returned to the supplier from the buyer, often due to defects or other reasons for dissatisfaction.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, carried over from the previous period's closing inventory.

Earned Revenue

Income generated from business activities, recognized when goods are delivered or services are performed, regardless of payment timing.