The Relative Importance of Various Asset Items on a Chartered

question 175

Multiple Choice

The relative importance of various asset items on a chartered bank's balance sheet reflects a bank's pursuit of which two conflicting goals?

• A)profits and risk
• B)liquidity and profits
• C)assets and liabilities
• D)buying and selling government securities

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Definitions:

Credit Memo

A document issued to a purchaser by a vendor to reduce the amount that the purchaser owes, often as a result of a return or refund.

Gross Profit

The difference between the revenue earned from sales and the cost of goods sold, not accounting for other expenses.

Inventory Shrinkage

Loss of products between purchase from a supplier and sale, often due to theft, damage, or errors.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate periods.