Which of the Following Types of Warranties Arises by Operation

question 45

Multiple Choice

Which of the following types of warranties arises by operation of law under certain circumstances?

• A)Express
• B)Implied
• C)Due-on-sale
• D)Express,implied,and due-on-sale
• E)Express and implied,but not due-on-sale

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.

Cash Equivalents

Investments that are liquid and short-term, easily turned into a specific amount of cash, with their initial durations being three months or shorter.

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks.

Long-Term Investments

Assets that a company intends to hold for more than a year, such as stocks, bonds, real estate, and investment in subsidiary companies, which are not easily converted into cash.