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gizmo_the_mogwai [7]
4 years ago
15

In advertising, puffery refers to ________. Group of answer choices broadcasting a straightforward promotional message including

innocent exaggeration for effect creating emotional appeals for a brand creating subliminal appeals for a brand providing value-added promotions
Business
1 answer:
ivolga24 [154]4 years ago
7 0

Answer:

The answer is innocent exaggeration for effect.

Explanation: Puffery is often an exaggerated statement used when advertising, and it is made for the sole aim of attracting customers or clients to a particular product or service.

This strategy is commonly used when making advertisements and promotional sales testimonials.

The strategy in advertising is used because it is assumed that people would not literally conclude that the exaggeration is actually true.

An example of Puffery would be when a company claims that they have the best product in the country, or the world.

Another example is when a company claims that they can make a client feel like he/she is flying over the moon.

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Assuming a 21 percent marginal tax rate, compute the after-tax cost of the following business expenses: $5,800 premium on busine
geniusboy [140]

Answer:

a) $4,582 b) $1,400 c) $3,900 d) $52,000 e) $7,160

Explanation:

The assumption is that the marginal tax rate is 21%

Therefore,

a) Calculate the after tax cost on $5,800 premium on business property and casualty insurance

First, it should be noted that the insurance premium on business property and casualty is tax deductible therefore, the calculation is as follows

$5,800 - ($5,800 x 0.21)

= $5,800 - $1,218

= $4,582

b) $1,400 fine paid for business entertainment

The fine paid on business entertainment is not tax deductible hence the after tax cost remains $1,400

c) $3,900 premium on key-person life insurance

Life insurance premium is not tax deductible, therefore the after tax cost remains $3,900

d) $52,000 political contribution

This political contribution is also not tax deductible, the after tax cost remains $52,000

e) $8,000 client meals

The congress has only allowed a deduction of 50% of most business meals

Therefore

$8,000 - ($4000 x 0.21)

$8,000- 840

=$7,160

6 0
3 years ago
If the account is interest bearing, how would you account for the interest when you reconcile your account?
galina1969 [7]

Answer:

the answer is 1 I do in fact think

7 0
3 years ago
Milea Inc. experienced the following events in Year 1, its first year of operations: Received $13,500 cash from the issue of com
Flura [38]

Answer:

Explanation:

Income statement

For the year ended December 31, year 1

Revenue:  

Service revenue  45000

Expense:  

Utilities expense 1100  

Salary expense 8100  

Total expense  9200

Net income  35800

Statement of Changes in Stockholders' Equity

For the Year Ended December 31, Year 1

Beginning common stock:              -    

Common stock issued       13,500  

Ending common stock        13,500

Beginning retained earnings              -    

Net income       35,800

Dividends          (1100)  

Ending retained earnings        34,700

Total stockholders' equity        48,200

Balance Sheet

As of December 31, Year 1

Assets  

Cash(13500+35270-1100-1100)       46,570

Accounts receivable(45000-35270)         9730

Total assets        56,300

Liabilities  

Salaries payable         8100

Total liabilities          8100

Stockholders' Equity  

Common stock       13,500

Retained earnings       34,700

Total stockholders' equity        48,200

Total liabilities and stockholders' equity        56,300

Statement of Cash Flows

For the Year Ended December 31, Year 1

Cash flow from operating activities  

Cash received from customers       35,270

Cash paid for utility expense       (1,100)  

Net cash flow from operating activities        34,170

Cash flow from investing activities                -  

Cash flow from financing activities  

Issuance of common stock       13,500  

Cash paid for dividends          (1100)  

Net cash flow from financing        12,500

Net change in cash        46,670

Beginning cash balance                -  

Ending cash balance        46,670

7 0
3 years ago
Kacy Spade, owner, invested $10,500 cash in the company in exchange for common stock. The company purchased office supplies for
Naya [18.7K]

Answer:

The trial balance of Kacy Spade showed total of $12,726 on both debit and credit as found in the attached spreadsheet

Explanation:

In preparing the trial balance, I showed  the earlier postings into ledgers for those accounts that had more one transaction and I showed those ones with just a transaction in the trial balance colored-coded in yellow.

Trial balance tests the arithmetical accuracy of postings done in the ledgers by summarizing the ledgers' balances in the trial balance.

Download xlsx
8 0
4 years ago
The major portion of the monthly payment is used to pay off the principal. True
adoni [48]
This is true.................
4 0
3 years ago
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