A Bank Account That Permits Direct Payment to a Third

question 132

Multiple Choice

A bank account that permits direct payment to a third party is a

• A)Savings account.
• B)Transactions account.
• C)Money market mutual fund.
• D)Traveler's check.

Understand the treatment of income taxes in interim reporting, including changes in tax rates.

Recognize the importance of disclosing significant changes, such as changes in accounting principle or estimates, in interim reports.

Learn the criteria for reportability of operating segments under the revenue, profit or loss, and asset tests.

Understand how inventory and long-term contract losses are treated in interim financial reports.

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Definitions:

Earmarks

Funds that are directed to specific projects, beneficiaries, or locations, often within larger spending bills, typically by legislative provisions.

Logrolling

A practice in politics where two or more parties agree to vote for each other's proposed legislation or interests, often regardless of merit.

Marginal Benefit

The additional satisfaction or value gained from consuming or producing one more unit of a good or service.

Tax Cost

The financial charges associated with taxation, including the actual tax payment as well as any related compliance or administrative expenses.