Millie Ordered Clothes from a Mail Order Catalog

question 38

Multiple Choice

Millie ordered clothes from a mail order catalog.No time was specified as to when the goods would be shipped.In such a case the FTC requires that the company must ship the goods to Millie within:

• A) 3 business days after receiving the order.
• B) 10 business days after receiving the order.
• C) 30 days after receipt of the order.
• D) a reasonable time and within time lines consistent with industry standards.

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Definitions:

Amortization

The process of spreading the cost of an intangible asset over its useful life.

Premium on Bonds Payable

A situation where bonds are sold above their face value, leading to a credit balance in the premium on bonds payable account.

Journal Entry

A record in accounting that documents a business transaction, indicating the accounts and amounts debited and credited.

Contract Rate

The agreed-upon interest rate in a lending agreement, bond, or other financial contracts.