An Activity Performed by Commercial Banks That Is Not Performed

question 87

Multiple Choice

An activity performed by commercial banks that is not performed by insurance companies is

• A) functioning as financial intermediaries.
• B) creating financial obligations against themselves.
• C) accepting deposits and offering checking accounts.
• D) allocating financial resources between borrowers and lenders.

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Definitions:

Posting

The process of recording financial transactions in the accounting books, such as a ledger or journal.

Source Documents

Original records that contain the details necessary to support the transactions entered in an accounting system, such as invoices, receipts, or contracts.

Ledger

A ledger is a comprehensive collection of a company's financial transactions, organized by account, during an accounting period.

Journalized

The process of recording financial transactions in a journal or the book of original entry.