Indicate with an "X" Whether Each Description Results in the Reporting

question 199

Essay

Indicate with an "X" whether each description results in the reporting of a current liability,long-term liability,or neither on the company's Balance Sheet.Assume a December 31,2011 yearend.

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Definitions:

Implied Warranty

A legal assumption that the goods or services sold meet certain standards of quality and functionality, even if not explicitly stated.

Merchantability

Implies that a product sold by a merchant is fit for the ordinary purposes for which such goods are used and meets the consumer's expectations.

Express Warranty

A clearly stated assurance or guarantee given by a seller about the condition or quality of a product or service.

Implied Warranty

A legal concept that guarantees a product will perform as widely expected without being explicitly stated in a contract.