Which of the Following Is the Term Used for the Requirement

question 60

Multiple Choice

Which of the following is the term used for the requirement of the Federal Trade Commission that advertisers have a reasonable basis for claims made in advertisements?

• A) Ad substantiation
• B) Ad verification
• C) Proof of ad veracity
• D) Illustration of ad veracity
• E) Acknowledgement of ad veracity

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Definitions:

Expenses

Costs incurred in the process of generating revenues, representing the consumption of resources such as raw materials, labor, and overhead.

Accrual Basis

An accounting method that recognizes revenue when earned and expenses when incurred, regardless of cash flow.

Recognizes Expenses

The accounting process of formally recording or acknowledging that an expense has occurred, typically impacting the profit and loss statement.

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements, which may not align with the calendar year.