Which of the Following Statements Is True About Deceptive Advertising

question 48

Multiple Choice

Which of the following statements is true about deceptive advertising?

• A)Puffery can be called deceptive advertising when consumers believe it to be true.
• B)Deceptive advertising is sometimes used because it establishes long-term consumer confidence in the product being advertised.
• C)To be labeled as deceptive,ads must contain some claims which are not prior substantiated.
• D)Deceptive ads serve the best interests of the advertisers.
• E)There are no regulations governing deceptive advertising.

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Definitions:

Ending Inventory

The total value or quantity of goods, materials, or products in stock at the end of an accounting period.

Raw Material

Basic substances in their natural, modified, or semi-processed states used as inputs to a production process for manufacturing goods.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, carried over from the end of the previous period.

Ending Inventory

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