Which of the Following Is a Correct Statement Regarding Implied

question 14

Multiple Choice

Which of the following is a correct statement regarding implied warranties?

• A) Implied warranties are absolute.
• B) The seller cannot include a clause in the sales contract that excludes implied warranties.
• C) The courts do not favor implied warranties.
• D) One of the implied warranties of quality imposed under the Uniform Commercial Code is the implied warranty of merchantability.

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Definitions:

Uncollected Receivables

Amounts owed to a company by customers for goods or services delivered but not yet paid for.

Written Off

Refers to the elimination of an asset's value from a company's balance sheet due to it being unrecoverable or having no further use.

Receivable

Funds that customers owe to a business for products or services already provided but not yet compensated for.

Bad Debt Reserve

An account set aside by a business to cover unpaid debts that are unlikely to be recovered.