Which of the Following Is an Example of Deception

question 66

Multiple Choice

Which of the following is an example of deception?

• A)an advertisement stating that 14 out of 15 dentists use a particular toothpaste
• B)an advertisement stating that a fast food chain sells the world's finest chicken
• C)an advertisement stating that a particular deodorant is the world's best
• D)an advertisement stating that a retail chain sells the freshest vegetables

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Definitions:

Liability

An obligation arising from past transactions or events, which may result in an outflow of resources embodying economic benefits.

Provision

An amount set aside in the accounts to cover a probable future expense or liability, recognized for known obligations of uncertain timing or amount.

Onerous Contract

A contract where the unavoidable costs of meeting the obligations exceed the economic benefits expected to be received from it.

Unavoidable Costs

Costs that cannot be eliminated, reduced, or postponed, and must be incurred regardless of specific business decisions or changes in operations.