Several Years Ago, After Inaccurately Advertising That Listerine Prevented Colds

question 55

Multiple Choice

Several years ago, after inaccurately advertising that Listerine prevented colds, the FTC required Listerine to run a second set of ads that pointed out to consumers that the previous advertising claim was false. This second set of ads is known as ________.

• A) deceptive advertising
• B) truth-in-advertising
• C) corrective advertising
• D) stimulus generalization
• E) advertorial content

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Definitions:

Expense Account

An income statement account that represents the cost of goods sold, operating expenses, and non-operating expenses.

Income Statement

A financial report that shows the revenues, expenses, and profit or loss of a company over a specific accounting period.

Debit Total

The sum of all debit entries made in an account or in the general ledger.

Credit Total

The sum of all credits entered into an accounting system during a specific period.