ZYX COMPANY Observe the ER Diagram for the ZYX COMPANY

question 66

Multiple Choice

ZYX COMPANY
Observe the ER diagram for the ZYX COMPANY:

This ER diagram will be used for the following questions citing ZYX Company ER Diagram.
-Observe the ER diagram for the ZYX Company:
Which of the following is true according to the ZYX Company ER diagram?

• A)An employee can serve many customers and he or she has to serve at least one customer
• B)An employee can serve one customer or he or she does not have to serve any customers
• C)Each employee serves exactly one customer
• D)Employees do not serve customers

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Definitions:

Net Income

The net income of a company, which is the remaining amount after deducting all expenses and taxes from the total revenue.

Warranty Expense

Warranty expense is the estimated cost a company expects to incur for repairing, replacing, or compensating for defective products under warranty.

Estimated Warranty Liability

A provision in the financial statements estimating the cost a company expects to incur under its product warranty commitments.

Customer Warranties

Promises made by sellers to buyers to repair or replace products that fail within a certain period of time after sale.