Janet Recently Learned That Her Credit Card Company Charged Her

question 63

Multiple Choice

Janet recently learned that her credit card company charged her an unauthorized amount of 94 cents on her credit card bill.She reviewed the matter and determined that this charge had been made on a monthly basis for several months.She consulted with a lawyer who told her that in the circumstances the best procedural approach to addressing the problem was for her to

• A)issue a claim in Small Claims Court for the few dollars that she had been improperly charged.
• B)commence court proceedings in Superior Court seeking a greater amount for legal costs.
• C)do nothing given the small amount at stake and the costs of litigation.
• D)seek to have the action against the credit card company certified as a class action thereby allowing her to represent the entire group of possible class members,i.e.those who likewise were billed an unauthorized amount by the credit card company.
• E)forget any court proceedings but try to attract media attention.

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Definitions:

Net Income

The residual income of a company after total revenue has been diminished by all costs and taxes.

Cash Flows

The net amount of cash being transferred into and out of a business, especially considered important for assessing liquidity, flexibility, and overall financial health.

Indirect Method

An approach to preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash from operating activities.

Operating Activities

The section of a business's cash flow statement that accounts for its core business operations' cash inflows and outflows, involving receipts from sales, payments to suppliers, and payroll.