Suppose a Commercial Bank Has a Level of Target Reserves

question 10

Multiple Choice

Suppose a commercial bank has a level of target reserves of $500 million and actual reserves of $575 million.This bank's ________ is/are $75 million.

• A)profits
• B)fractional reserves
• C)excess reserves
• D)reserve ratio
• E)cash drain

Understand how merchandise returns from customers are recorded in accounting.

Comprehend the components that constitute the cost of merchandise inventory.

Grasp the accounting procedures in a perpetual inventory system, including how merchandise returns to suppliers are handled.

Recognize how credit card sales and associated fees are recorded in retail accounting.

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Definitions:

Direct Labor

Direct labor refers to the wages and other costs for employees who are directly involved in the production of goods or services.

Price Variances

Differences between the actual cost of a product or service and its expected cost, often analyzed in budgeting and cost management.

Quantity Variances

Differences between actual quantities of inputs used in production and the standard quantities expected to be used.

Standards

Established benchmarks or norms for measuring quality, performance, or compliance within an industry or organization.