Provide a Definition for Each of the Following Accounting Principles

question 74

Essay

Provide a definition for each of the following accounting principles.
$$\begin{array} { | l | l | } \hline \text { Accounting Principle } & \text { Definition } \\\hline \text { Disclosure } & \\\hline \text { Materiality Concept } & \\\hline\end{array}$$

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Definitions:

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.

Warranty of Title

A guarantee by a seller to a buyer that the seller has the right to transfer ownership and no undisclosed encumbrances exist.