If Float Is Predicted to Increase Because of Bad Weather,the

question 20

Multiple Choice

If float is predicted to increase because of bad weather,the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves.

• A)defensive;inject
• B)defensive;drain
• C)dynamic;inject
• D)dynamic;drain

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Definitions:

Uncollectible

Refers to accounts receivable that are considered to be uncollectible and thus written off as a loss.

Adjusting Entry

A journal entry made prior to preparing financial statements to adjust the balances of accounts to accurately reflect the financial activity.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to update the balances of certain accounts and reflect the true financial position of a business.

Net Realizable Value

Net realizable value is the estimated selling price of goods, minus the cost of their sale or disposal.