The Following Are Components of the Wheeler-Lea Amendment to the FTC

question 184

Multiple Choice

The following are components of the Wheeler-Lea Amendment to the FTC Act, except:

• A) expanded the authority of the FTC to prohibit false and misleading advertising practices
• B) granted the FTC power to monitor the amount of time television stations advertise to children
• C) gave the FTC power to levy fines when necessary
• D) granted the FTC access to the courts to enforce the law and ensure compliance with FTC rulings

Know the accounting entries for stock subscriptions and their down payments.

Understand the implications of dividends in arrears on preferred stock.

Grasp the accounting treatments and financial statement impacts of stock splits and stock options (both compensatory and noncompensatory).

Understand the principles of stock appreciation rights (SARs) compensation plans and their measurement and exercise dates.

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Definitions:

Cost Behaviour

Refers to how a cost changes as the related level of activity or volume changes.

Fixed Expenses

Costs that do not change in total despite changes in the volume of goods or services produced or sold, such as rent or salary expenses.

Volatility

This refers to the degree of variation of a trading price series over time, typically measured by the standard deviation of logarithmic returns.

Net Income

Net Income is the total earnings of a company after all expenses and taxes have been subtracted from total revenue, indicating profitability.