Under the indirect method of preparing the statement of cash flows, a gain on the sale of equipment is:
A) subtracted from net income in the operating activities section.
B) added to net income in the operating activities section.
C) subtracted from the book value of the equipment in the financing activities section.
D) ignored since this transaction does not affect cash.
A
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Although ads can be tested prior to production, most advertising agencies perform little pretesting because they:
A) tend to be unreliable. B) are too expensive. C) are not requested very often by clients. D) have to be matched with posttests to be effective.
Nike's longtime symbol on its products and in its ads is the Nike "Swoosh," which looks like a curved checkmark. If another athletic shoemaker used that symbol on its products or in its ads, that company would most likely be guilty of ________
A) comparative advertising B) competitive infringement C) misleading advertising D) trademark infringement E) deceptive advertising