Which of the Following Is Part of M2

question 11

Multiple Choice

Which of the following is part of M2?

• A) currency held inside a bank
• B) none of these are part of M1 or M2
• C) credit cards
• D) checks

Analyze and compute financial ratios related to dividends, earnings per share, and return on equity.

Understand the concept of restricted retained earnings and prepare stockholders' equity section.

Preparation and understanding of simple income statements and the calculation of net income.

Learn the distinctions between operating and other revenues/expenses, and their impact on net income.

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Definitions:

Net Operating Income

The profit generated from a company's operational activities, excluding taxes and interest.

Units

Basic quantities or measures of a product or service, representing a countable number of these items.

Activity Variance

The difference between the estimated cost/benefit of an activity and its actual cost/benefit.

Net Operating Income

The profit a company generates from its normal business operations, excluding other income and expenses not related to its core activities.