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lana [24]
2 years ago
7

Naomi is preparing the company’s cash budget. when preparing the cash receipts section, she included cash sales, receipts of int

erest, receipts of dividends, and proceeds from planned sales of plant assets. what error did naomi make? will cash receipts be too high or too low as a result of this m
Business
1 answer:
sergij07 [2.7K]2 years ago
6 0

The error of Naomi is that she included the receipts of interest, receipts of dividends, and proceeds from planned sales of plant assets in the cash receipts section. This section would only include the cash sales and collection of accounts receivable with the forecasted sales per month of the company. As a result of this error, the cash receipts would be too high. 

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Complete Question:

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Group of answer choices.

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b. if the buyer asks for it.

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d. in conjunction with lease contracts, not sales contracts.

Answer:

a. if the buyer is relying on the seller to select suitable goods.

Explanation:

In this scenario, Construction Products Company and Dante enter into a contract for a sale of bricks and stones. Construction Products knows the purpose for which Dante will use the goods (bricks and stones). Under the Uniform Commercial Code (UCC), an implied warranty of fitness of a particular purpose arises if the buyer is relying on the seller to select suitable goods. This simply means that, Construction Products who is the seller of the bricks and stones implied a warranty of fitness because they know the purpose for which Dante will use the acquired goods and should meet his requirements or needs.

<em>Hence, Construction Products Company is bounded by the contractual agreement (warranty) to provide quality goods which would meet Dante's reasons for buying them since he relying on their expertise or judgmental skills. </em>

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