Which of the Following Is the Best Example of the Use

question 15

Multiple Choice

Which of the following is the best example of the use of puffery in advertising?

• A)Central Bank advertises free checking with a minimum balance of $1,000.
• B)Michelin advertises a 50,000-mile guarantee for its tires.
• C)Godiva claims that it makes the finest chocolates in the world.
• D)Head & Shoulders shampoo advertises that it has been proven to be effective in preventing dandruff.
• E)Federal Express advertises guaranteed overnight delivery service.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated using beginning inventory, purchases, and cost of goods sold.

Units

A measure of quantity, such as items, goods, or services, which can be counted or measured.

FIFO

First-In, First-Out (FIFO) is an inventory valuation method where goods first added to inventory are the first ones considered sold.

Ending Inventory

The financial value of products on hand for selling at the end of a fiscal period.