Deferred Expenses That Benefit a Relatively Short Period of Time

question 206

True/False

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

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Definitions:

Reasonably Fit

A standard in commercial transactions that signifies goods provided under a contract must be of average or suitable quality for the purposes for which such goods are normally used.

Implied Warranty

A legal term for guarantees that are not expressly stated but are assumed in the sale of goods or services, ensuring basic standards of quality and functionality.

Merchantability

A legal concept referring to the implicit guarantee that a product is fit for the purposes for which it is sold.

UCC

A wide-ranging series of statutes known as the Uniform Commercial Code is in place to govern commercial activities across the US.