Scenario 3-1 In the Early and Mid-1800s, Soaps Were Made from Animal

question 12

Multiple Choice

Scenario 3-1
In the early and mid-1800s, soaps were made from animal fats.The perishable quality of the soap, however, allowed manufacturers to sell a product with only regional appeal.This changed when soap makers began to use vegetable fats and perfume in the soap-making process.According to Procter & Gamble legend, one batch of this vegetable-based soap was left to mix too long.The result was a product that floated in water due to an excess amount of air.The company turned this into a selling point and, in 1882, launched one of the first soaps with the potential for national sales-Ivory soap-with the slogans "It floats" and "99-44/100 percent pure." (Stephen Fox, The Mirror Makers, [New York: Random House, 1984], 24.)
-(Scenario 3-1) The innovation of Ivory soap created which advantage for the advertiser?

• A)differentiating the product from other soaps
• B)instilling fear in the consumer
• C)selling the product regionally
• D)avoiding regulation of the product by the Federal Trade Commission

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Definitions:

Chart of Accounts

A listing of all the accounts in a general ledger that a business uses to code each of its transactions based on the nature of the expense, asset, liability, etc.

General Ledger

A comprehensive accounting record of all transactions of a business, summarizing all accounts and transactions in one place.

General Ledger Accounts

These are the main accounts where all the business transactions of a company are recorded, serving as a permanent record organized by account.

Trial Balance

A financial worksheet that gathers the balances from all accounts into debit and credit columns, verifying the mathematical accuracy of a company's accounting system.