According to the Magnuson-Moss Warranty Act, which of the following statements is true?
a. The law requires manufacturers and sellers to give written warranties.
b. The law replaced UCC warranty law.
c. If a written warranty is given by a manufacturer, the implied warranties of merchantability and fitness for a purpose cannot be eliminated.
d. Does not differentiate between a full warranty and a limited warranty.
C
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IFRS prohibits use of the LIFO cost-flow assumption
Indicate whether the statement is true or false
Using operant resources effectively address which characteristic of services?
a. Intangibility b. Inseparability c. Variability d. Perishability e. Target audience involvement
The Captain Company began operations on January 1, 2016. In 2016, Captain's sales were $400,000, and payments arising out of warranty obligations were $18,000.
? Required: ? a. Assume that this is an assurance-type warranty and $0.10 of warranty cost will be incurred for each $1.00 of sales. Prepare the 2016 journal entry(ies) for warranty expense and payments using the modified cash basis. b. Assume that this is an assurance-type warranty and $0.10 of warranty cost will be incurred for each $1.00 of sales. Prepare the 2016 journal entry(ies) for warranty expense and payments using the GAAP approach which requires that warranty expense (and the related liability) be accrued in the period of the sale. c. Assume that this is a service-type warranty and $0.10 of each $1.00 of sales represents warranty revenue. Prepare the 2016 journal entries related to product sales and warranty activities.. What will be an ideal response?
Which of the following would be a quantitative way to ascertain the fairness of an LBO's asking price?
A. Book value B. Price-earnings ratio C. Present value of future earnings D. All of the answers are correct.