Which of the Following Is Essential for a Revocation of Acceptance

question 40

Multiple Choice

Which of the following is essential for a revocation of acceptance to be effective?

• A) The seller must be notified of the revocation within a reasonable time.
• B) The seller's promise to timely cure if the nonconformity is not met.
• C) The nonconformity must be discovered before acceptance is given.
• D) The nonconformity substantially impairs the value of the goods to the buyer.

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Definitions:

Dollar-Value LIFO

An inventory valuation method that uses the dollar value of inventory rather than the physical count of goods, adjusting for inflation.

Current Cost

The cost to replace an asset or settle a liability at the current market rate, as opposed to its historical purchase price or book value.

Average Cost

A calculation that divides the total cost of goods available for sale by the total number of units available for sale, determining the cost per unit.

Exchange Rates

The rate at which one currency can be exchanged for another, dictating how much of one currency you can get for a unit of another currency.