Errors in Financial Statements Are

question 27

Multiple Choice

Errors in financial statements are:

• A) never material.
• B) intentional.
• C) unintentional.
• D) Both a and c

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Definitions:

Implied Warranties

Unspoken, unwritten promises ensured by law that guarantee the goods sold meet certain criteria of quality and usability without expressly stating them.

Express Warranty

A written or verbal promise made by a seller to a buyer about the quality or nature of a product, offering assurance that certain facts or conditions are true.

Magnuson-Moss Warranty Act

A federal law in the United States that governs warranties on consumer products to ensure protection and rights for consumers.

Full Warranty

A comprehensive guarantee that a manufacturer or seller makes regarding the condition of its product, including a promise to repair or replace defective items.