The Federal Trade Commission (FTC)

question 18

Multiple Choice

The Federal Trade Commission (FTC) :

• A) has authority to decide whether specific marketing and sales practices are unfair or deceptive.
• B) does not have power to regulate unfair and deceptive practices in cyberspace.
• C) can find that a seller engaged in unfair trade practices only if the seller violated one of the federal laws the FTC is empowered to enforce.
• D) cannot order federal courts to award redress.

---

Definitions:

Allowance for Doubtful Accounts

An estimate of the amount of accounts receivable that may not be collected, recognized as a contra asset account.

Cash Realizable Value

The net amount of cash expected to be received from receivables, after accounting for allowances for doubtful accounts.

Accounts Receivable

Debts owed by customers to a company for delivered goods or performed services that remain unpaid.

Allowance

An accounting adjustment that reduces the value of an asset or increases a liability to reflect probable future costs.