The Label on a Carton of Ice Cream in a Local

question 57

Multiple Choice

The label on a carton of ice cream in a local retail shop read,"Attention Diabetics: Contains carbohydrates naturally occurring in milk,does not contain sucrose".This is an example of _____ and would be important to people who are concerned about maintaining the right blood sugar levels.

• A) an affirmative disclosure
• B) a testimonial of goodness
• C) puffery
• D) noise
• E) a questionable endorsement

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Definitions:

Revenue

The total income generated by a business from its operational activities, such as sales of goods or services, before any expenses are deducted.

Accrued Revenue

Represents the income that has been earned but not yet billed or received by the company.

Prepaid Expense

Payments made in advance for goods or services to be received in the future, recorded as assets on the balance sheet.

Services Provided

The activities or functions performed by a business or organization for the benefit of its customers, which do not result in the ownership of a physical product.