A Statement That a Particular Warranty Does Not Apply Is

question 34

Multiple Choice

A statement that a particular warranty does not apply is called a(n)

• A)disclaimer.
• B)infringement.
• C)limitation of remedy clause.
• D)voidable title.

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Definitions:

Contingent Liability

A potential obligation that may arise depending on the outcome of a future event, not recognized on the balance sheet unless occurrence is probable and the amount can be reasonably estimated.

Estimated Liability

A potential financial obligation that may arise in the future, recognized in accounting based on probable expenditures.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, usually expressed in the form of interest payments on loans, bonds, or credit lines.