Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following is an example of an express warranty?

A product is assumed to be fit for its ordinary use without any statement from the seller.

A buyer expects a product to last based on common industry standards.

A warranty implied by law that goods are merchantable.

A seller verbally promises that a product will function as described for one year.

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Verified step by step guidance

Step 1: Understand the concept of an express warranty. An express warranty is a specific promise or statement made by the seller about the quality, functionality, or performance of a product. This promise can be verbal or written and is explicitly communicated to the buyer.

Step 2: Differentiate express warranties from implied warranties. Implied warranties are not explicitly stated but are automatically provided by law, such as the warranty of merchantability or fitness for a particular purpose. Express warranties, on the other hand, require a clear and direct statement from the seller.

Step 3: Analyze the options provided in the problem. Identify which option involves a direct and explicit promise made by the seller about the product's performance or functionality.

Step 4: Focus on the correct answer: 'A seller verbally promises that a product will function as described for one year.' This is an example of an express warranty because the seller is making a specific verbal promise about the product's functionality for a defined period.

Step 5: Reinforce the understanding by noting that the other options describe implied warranties or assumptions based on industry standards, which are not express warranties.