Which One of the Following Statements Is NOT True

question 12

Multiple Choice

Which one of the following statements is NOT true?

• A) Regulation may be beneficial because it helps to protect society from unscrupulous business practices.
• B) Regulation may be beneficial because it may help ethically run businesses compete with less ethical ones.
• C) Regulation may be beneficial because it is always cheaper than letting employees be injured.
• D) Regulation may be beneficial because it can bring economic benefits.

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Definitions:

Federal Income Tax

A tax levied by the United States federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Sales Warranty Accrual Method

An accounting method where a company estimates the cost of warranty claims expected to arise from current sales and records this as an expense when the sale occurs.

Warranty Expense

The estimated cost of honoring product warranties, which companies recognize to match expenses with related revenues.

Estimated Warranty Costs

Projected expenses that a company expects to incur to repair or replace products during a warranty period.