Refer to the Passage Below to Answer the Questions That

question 28

Multiple Choice

Refer to the passage below to answer the questions that follow.
Everyone knows McDonald's, the worldwide fast food chain. McDonald's has used consumer promotions for years. Restaurants offer a kids' Happy Meal that always includes a toy, and oftentimes the package itself is a promotion, such as pumpkin buckets at Halloween. McDonald's has also used a promotion patterned after the popular Monopoly game, in which everyone wins something small, like a soft drink or french fries, but one participant could win $1 million dollars. The Monopoly promotion usually lasts several months. McDonald's also participates in promotions with movies, such as Star Wars and several Disney movies. Another promotion McDonald's is considering is a program that will give consumers one free Happy Meal for every 10 they purchase.
-Maria won $1 million playing Monopoly at McDonald's.What type of consumer promotion is this?

• A) direct premium
• B) self-liquidator premium
• C) contest
• D) price deal
• E) game

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Definitions:

Salaries Payable

The amount owed to employees for work performed that has not yet been paid at the end of a reporting period.

Salaries Expense

The total amount of salary payments made to employees, recognized as an expense on the income statement.

Direct Method

A cash flow statement reporting approach where actual cash flow information from the company's operating activities is provided, distinguishing between cash receipts and payments.