Which of the Following Is a Test of Merchantability for All

question 19

Multiple Choice

Which of the following is a test of merchantability for all sales contracts?

• A) The goods conform to any promises or statements of fact made on the container or label.
• B) The goods are of different kind, quality, and quantity within each unit.
• C) The goods need not necessarily be packaged or labeled adequately.
• D) The goods conform to the general description of the goods available in the market.

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Definitions:

T Accounts

T accounts are a visual aid in accounting to represent general ledger accounts, showing debits on the left side and credits on the right, to track financial transactions.

Direct Labour Cost

The total expense incurred by a company for the wages of the workforce directly involved in manufacturing or producing goods.

Sales Salaries Expense

The total cost associated with compensating the sales force, including wages, commissions, and bonuses.

Work in Process

An inventory category that refers to partially completed goods awaiting completion and sale, standing between raw material and finished goods inventory.