In Birdsong v. Apple, Inc., Birdsong brought a class action suit against Apple, alleging that iPod owners had suffered hearing loss using the iPod earbuds set at the highest decibel level. Birdsong claimed Apple breached an implied warranty of merchantability. The court held
A. In favor of Birdsong because the iPod earbuds were not fit for the purpose of listening to music because they could cause hearing damage.
B. In favor of Birdsong because Apple did not provide a suitable disclaimer.
C. In favor of Apple because the ordinary use of the iPod was to listen to music and the product was fit for that use.
D. In favor of Apple because class actions are not applicable in a warranty situation.
Answer: C
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A director:
A. cannot be removed from office by shareholders without any cause. B. can be removed from office without being given notice or a hearing. C. cannot be removed from office because he or she has acted contrary to the interests of the corporation. D. can be removed from office if he or she voluntarily failed to attend directors' meetings.
The ratio of net sales to assets is calculated as ________
a. Net Sales / Total Assets b. Average Total Assets / Net Sales c. Current Assets / Current Liabilities d. Net Sales / Average Total Assets
The office employees are paid weekly, earn a total of $500 each day, and work a 5-day week which ends on Friday. If the accounting period ends on Thursday, the adjusting entry for unpaid wages will require a:
a. debit to Wages Expense for $500. b. debit to Wages Payable for $2,000. c. debit to Wages Expense for $1,000. d. credit to Wages Expense for $2,000. e. none of the above.
The ________ is the time period that elapses from the point when a firm uses the raw materials in manufacturing a finished good to the point when the finished good is sold
A) cash turnover B) cash conversion cycle C) average age of inventory D) average collection period