Merchants are required to warrant that the goods they sell or lease are fit for the particular purpose for which a buyer or lessee will use the goods.
Answer the following statement true (T) or false (F)
False
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Notifications that a PO has been prepared and sent to the vendor are sent to the receiving department, the accounts receivable process, and the department or process that requested the purchase
Indicate whether the statement is true or false
Segregation of duties is a control activity that is designed to protect against the risk that an individual could both perpetrate and cover up a fraud
a. True b. False Indicate whether the statement is true or false
Landfall Navigation began operations in 2020 and provides a one year warranty on the products it sells. They estimate that 20,000 of the 400,000 units sold in 2020 will be returned for repairs and that these repairs will cost $8 per unit. The cost of repairing 16,000 units presented for service in 2020 was $128,000. Landfall should report
a. warranty expense of $32,000 for 2020.
b. warranty expense of $128,000 for 2020.
c. warranty liability of $160,000 on December 31, 2020.
d. no warranty obligation on December 31, 2020, since this is only a contingent liability.
Which of the following is TRUE of skills giving by American companies?
a. Based on surveys, most very large companies have official volunteer-skills-giving programs for employees. b. Volunteering skills provides much more benefit to those in need than does financial giving. c. “Full day” volunteering is typically frowned upon by major companies. d. Large companies usually choose for employees the types of giving in which they will participate.