While Reading a Magazine James Notices an Ad for a Safe

question 35

Multiple Choice

While reading a magazine James notices an ad for a safe weight loss supplement that promises rapid weight loss.Which claims and/or terms used in the ad are red flags?​

• A)​safe only
• B)promises rapid weight loss
• C)supplement only
• D)safe; promises rapid weight loss
• E)​safe; supplement

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Definitions:

Perpetual Inventory System

A method of accounting for inventory that continuously updates inventory records after each purchase or sale.

FIFO Periodic Inventory Method

The first-in, first-out (FIFO) periodic inventory method assumes that goods sold are those that were added to the inventory earliest, calculated periodically at the end of a reporting period.

Ending Inventory

Goods' valuation ready for trading at the end of a bookkeeping period.

FOB Shipping Point

A term that indicates the buyer takes responsibility for goods once they are shipped, and the point of departure marks the transfer.