Which of the Following Is Not an Example of Signaling

question 289

Multiple Choice

Which of the following is not an example of signaling?

• A)An employer calls the references of a potential employee before hiring him or her.
• B)A boyfriend gives his girlfriend a necklace with her favorite gemstone for Valentine's Day.
• C)A home flooring company advertises its high Better Business Bureau rating during its television commercials.
• D)A company advertises that it makes charitable contributions.

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Definitions:

Journal Entry

A record in accounting that represents every single transaction made by a company, detailing the financial activities.

Debits

Entries on the left side of a double-entry bookkeeping system that increase asset or expense accounts, or decrease liability, equity, or revenue accounts.

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in an individual's bank account.

Assets

Resources owned or controlled by a person or company, expected to bring future economic benefits.