MULTIPLE CHOICE QUESTION ASSIGNMENT Answer the following multiple choice questions. Indicate your choice by selecting...
60.1K
Verified Solution
Link Copied!
Question
Accounting
MULTIPLE CHOICE QUESTION ASSIGNMENT
Answer the following multiple choice questions. Indicate your choice by selecting only one option from the four options given for each question answered.
Use the following information to answer question 1 to 2:
Maxmor Ltd is a television manufacturing company. At the beginning of the financial year ended 28 February 20.19, Maxmor Ltd started selling all its televisions with a refund policy. If the customer is not satisfied, the television may be returned for a full refund. Sales for the year ended 28 February 20.19 amounted to R1 500 000. At year-end on 28 February 20.19 the companys directors reliably estimated that based on the current years returns and industry patterns 5% of the television sets sold will be returned for a refund
REQUIRED:
Question 1:
Which one of the following statements are correct based on the information provided above?
1.
Maxmor Ltd has only a constructive obligation to provide customers with a refund
2.
Maxmor Ltd has only a legal obligation to provide customers with a refund.
3.
Maxmor Ltd has both a legal and constructive obligation to provide customers with a refund.
4.
Maxmor Ltd has neither a legal nor a constructive obligation to provide customers with a refund
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
