This Agency Is Responsible for Preventing Businesses from Engaging in Misleading

question 73

Multiple Choice

This agency is responsible for preventing businesses from engaging in misleading advertising, unfair trade practices, and monopolistic actions, as well as for protecting consumer rights.

• A) Environmental Protection Agency
• B) Food and Drug Administration
• C) Equal Employment Opportunity Commission
• D) Federal Trade Commission

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Definitions:

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Direct Write-Off Method

An accounting method used to recognize bad debts only when specific receivables are deemed uncollectible, without maintaining an allowance account.

Allowance Method

An accounting technique that estimates and sets aside a portion of accounts receivable that may not be collectible, reflecting potential losses.

Credit Sales

Sales in which the payment is deferred to a future date, typically allowing the buyer to receive goods or services immediately but pay later.