To Properly Protect Consumers

question 13

Multiple Choice

To properly protect consumers,

• A) tests of a product can safely assume that the product will be used in just the way that the manufacturer intends it to be used.
• B) accidents occur exclusively as a result of product misuse.
• C) if a product poses a potential, serious threat, a company may need to take extraordinary measures to ensure continued safe use of it.
• D) only new products, not established products, need to be tested.

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Definitions:

Expense Accounts

Accounts used to record the consumption of economic benefits during the operational activities of a business.

Asset Accounts

Asset Accounts are financial ledger accounts that report the value of tangible and intangible items owned by an entity, such as cash, inventory, and equipment.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid, regardless of when the transaction occurred.

Financial Statements

Papers presenting a snapshot of a firm's financial health, which include the balance sheet, income statement, and cash flow statement.