A Difference Between a Surety and a Guarantor Is That

question 88

Multiple Choice

A difference between a surety and a guarantor is that the guarantors:

• A)must be paid for their services.
• B)should enter into a deed of trust with the creditors.
• C)should keep a collateral with the creditors.
• D)become liable only if the principal debtor first defaults.

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Definitions:

Warranty Repairs

Services offered to repair or replace a product within a specific time frame, typically free of charge, under a warranty agreement.

Warranty Expense

This is an accounting term for the cost that a company anticipates or incurs due to the repair or replacement of products under warranty.

Sales Units

The quantity or number of products sold or services rendered by a business during a specific period.

Product Warranty Payable

A liability account that records the estimated amounts a company expects to pay for warranties on products it has sold.