If a Buyer Accepts Defective Goods and Wants to Hold

question 21

Multiple Choice

If a buyer accepts defective goods and wants to hold the seller liable,the buyer must give the seller notice of the defect:

• A)within four weeks.
• B)within a reasonable time.
• C)within a year.
• D)within a period of three months.

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Definitions:

Income Statements

A financial statement that records a company's revenues and expenses over a specific period, showing net profit or loss.

Contribution Format

A structure of the income statement that distinguishes between fixed and variable expenses to emphasize the contribution margin.

Merchandising Company

A type of business that derives its revenue from retailing or wholesaling products it does not manufacture.

Traditional Format

A standard or conventional method of presenting financial information, such as income statements or balance sheets, that follows established accounting principles.