Which of the Following Is NOT a Primary Source of Liquidity

question 49

Multiple Choice

Which of the following is NOT a primary source of liquidity?

• A)Excess cash reserves over and above regulatory reserve requirements.
• B)Borrowings in the money market.
• C)Borrowings in the purchased funds market.
• D)Capital notes and other long-term financing alternatives.
• E)Cash-type assets that can be sold with little price risk and low transaction costs.

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Definitions:

Expensing R&D

The process of charging research and development costs as expenses in the period they are incurred rather than capitalizing them.

Conservatism Principle

an accounting principle that guides companies to report lower values for assets and revenues, higher values for liabilities and expenses when in doubt, ensuring that financial statements do not overstate the company’s financial position.

Impairment Loss

The amount by which the carrying amount of an asset exceeds its recoverable amount, leading to a decrease in the asset's value on the balance sheet.

Carrying Value

The book value of assets and liabilities recorded on the financial statements, often differing from market value.