Banks Will Be Examined at Least Once a Year and Given

question 51

Multiple Choice

Banks will be examined at least once a year and given a CAMELS rating by examiners. The L stands for

• A)liabilities.
• B)liquidity.
• C)loans.
• D)leverage.

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Definitions:

Credit

A bookkeeping entry that increases the balance of liabilities and revenue accounts, or decreases the balance of an asset or expense account.

Accounts Receivable

Liabilities customers hold towards a business for the delivery of goods or services that have not been paid off.

Financial Statement

Documents that present the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

Statement of Retained Earnings

This report outlines the fluctuation in a company’s retained earnings over a particular accounting timeframe, incorporating elements like net profits and dividend distributions.