Which of the Following Statements Is NOT True

question 24

Multiple Choice

Which of the following statements is NOT true?

• A)Service guarantees are explicit promises.
• B)Guarantees are most effective when customers already have a level of trust in the organisation.
• C)Guarantees work when they promise high standards.
• D)Guarantees work when they promise consistency.
• E)Guarantees work when some form of compensations are offered.

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Definitions:

Fair Value Option

An election that allows companies to report specific financial assets and liabilities at their fair values, with changes in fair value recognized in the income statement.

Acquisition Method

A set of procedures used in accounting to consolidate the financial statements of two companies in the event of a merger or acquisition.

Consolidated Balance Sheet

A financial statement that reports the assets, liabilities, and equity of a parent company and its subsidiaries as one entity.

Book Value

The net value of a company's assets minus its liabilities, often used to assess the company's financial health and value.