Which of the Following Statements Is True of Informative Promotion

question 14

Multiple Choice

Which of the following statements is true of informative promotion?

• A) It is designed to stimulate a purchase or an action to purchase.
• B) It is used to keep the product and brand name in the public's mind.
• C) It seeks to convert an existing need into a want or to stimulate interest in a new product.
• D) It seeks to form relationships with customers and potential customers through technological ties.

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Definitions:

Bad Debts Expense

An expense reported on the income statement reflecting the cost of estimated uncollectible accounts receivable.

Net Credit Sales

Sales made on credit minus any sales returns or allowances, reflecting the actual credit sales revenue.

Uncollectible Accounts

Debts owed to a company that are considered to be uncollectable and are therefore written off as a bad debt expense.

Estimated Uncollectible

An accounting term referring to the portion of accounts receivable that a company does not expect to collect.