Advertising Generally Is Required to Be Accompanied by Certain Disclosures

question 6

Multiple Choice

Advertising generally is required to be accompanied by certain disclosures. According to Federal Trade Commission guidelines, disclosures accompanying native ads should

• A)not be where consumers will notice them.
• B)not be above or before the native ad.
• C)not be as close as possible to where consumers look first.
• D)stand out.

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Definitions:

Installment Sales

The method of recognizing revenue where the payment is received over a period of time in installments, often used in real estate and high-priced consumer goods transactions.

Deduction

An expense that can be subtracted from gross income to reduce the amount of income subject to tax.

Revenue

The total income generated by the sale of goods or services related to a company's primary operations before any expenses are deducted.

Realized

Pertains to gains or losses that have been incurred as a result of actual transactions as opposed to those that are theoretical or projected.