A Statement Made by a Seller Regarding a Product Might

question 38

Multiple Choice

A statement made by a seller regarding a product might be interpreted as either an opinion or an express warranty depending on:

• A) whether the contract is oral or written.
• B) the relative knowledge of the buyer and seller.
• C) whether the contract contains a disclaimer.
• D) the type of goods or services dealt with.

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Definitions:

Net Income

The amount of earnings remaining after all expenses, including taxes and costs, have been subtracted from total revenue.

Revenues

The total amount of money received by a company for goods sold or services provided during a specific period, before any deductions.

Expenses

Costs incurred in the process of earning revenue, such as rent, utilities, and salaries.

Stockholders' Equity

The remaining interest in a corporation's assets after all liabilities are subtracted, which signifies ownership.