Terrell asks a salesperson what size of water heater he should buy for a twenty-unit motel. If Terrell purchases a tank based on the salesperson's suggestion, the salesperson's recommendation is:
a. an express warranty of merchantability regarding the water heater.
b. an implied warranty of merchantability regarding the water heater.
c. an implied warranty of fitness for a particular purpose.
d. no warranty, but only a statement of opinion.
c
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The names of the four financial statements are ________________________________, ________________________________, ________________________________, and ________________________________
Fill in the blank(s) with correct word
As a general rule, revenue is recognized at the point of sale. Which one of the following situations illustrates this rule?
a. Products are sold to customers on credit with payment due in 30 days. b. Employees are paid wages the week after the wages are earned. c. Products are purchased for resale purposes. d. Interest is collected from amounts loaned to employees.
Judgment samples are highly subjective and therefore prone to much error
Indicate whether the statement is true or false
When analyzing the results of the test data method, the auditor would spend the least amount of time reviewing
a. the test transactions b. error reports c. updated master files d. output reports