A Company Mails Consumers Cards Telling Them They Have Won

question 13

Multiple Choice

A company mails consumers cards telling them they have won valuable prizes. When a consumer attempts to collect her prize, she discovers that she must pay $500 to collect the goods. In this case the FTC is likely to:

• A) seek a consent decree to end the practice
• B) only allow consumers to use credit cards, not cash, to purchase the goods
• C) have nothing to do with this case, it falls with the jurisdiction of the FBI
• D) any of the other choices
• E) none of the other choices are correct

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Definitions:

Office Supplies

Office supplies include items used in offices on a regular basis for tasks or maintenance, like paper, pens, and cleaning products.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the correct period.

Unused Supplies

Items that have been bought for operational use but remain unutilized or untouched within the storage or office space.

Prepaid Items

Expenses paid in advance and recorded as assets until they are used or consumed.