Which of the Following Would Most Likely Be a Defect

question 43

Multiple Choice

Which of the following would most likely be a defect under 402A of the Restatement of Torts?

• A)A chair produced without inserting the appropriate screws.
• B)A product with a defective design that is nevertheless the "state of the art."
• C)Vodka that is 100 proof and makes people drunk and causes liver damage after years of heavy use.
• D)All of the above are defects under 402A.

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Definitions:

Ledger

A book or digital record holding all the accounts of a company, showing the changes made to each account and the current balance.

Journal

A chronological record of all business transactions, used to transfer information to the general ledger.

Prepaid Insurance

Expenses paid in advance for insurance coverages that extend beyond the current accounting period.

Posting References

Codes or numbers used to track the transfer of information from journals to ledgers in the accounting process.