Fun Toyz Corporation Makes Skateboards,which It Sells to Con?sumers,including Gitana

question 14

Multiple Choice

Fun Toyz Corporation makes skateboards,which it sells to con?sumers,including Gitana.Gitana is injured due to a defect in the board that causes an accident in which Haley,a bystander,is also injured.In a product liability suit based on strict product liabil?ity,Fun Toyz may be liable to

• A)Gitana and Haley.
• B)Gitana only.
• C)Haley only.
• D)no one.

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Definitions:

Lease Classification

The categorization of lease agreements as either finance leases or operating leases, determined by specific criteria that affect the accounting treatment.

Lease Accounting

The accounting process that involves recording and managing leases, categorizing them as either operating or finance (capital) leases, and recognition of related expenses and liabilities.

Companies

Legal entities formed by individuals, shareholders, or stakeholders with the purpose of operating for profit, engaging in commercial, industrial, or professional activities.