Which of the Following Statements About Labeling Is False

question 326

Multiple Choice

Which of the following statements about labeling is false?

• A) The label can be used to facilitate the identification of a product.
• B) Labels do not have to disclose nutritional information.
• C) The label indicates the quality of the product.
• D) Labeling is used to describe the product.
• E) The label can play a promotional function.

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Definitions:

Bond

A fixed-income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

Straight-Line Method

A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset.

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life.

Yearly Interest Expense

The total amount of interest payment a company owes over the course of a year on its borrowings.