A Financial Institution That Is Owned by Its Depositors Is

question 98

Multiple Choice

A financial institution that is owned by its depositors is called a(n) :

• A)credit union.
• B)insurance company.
• C)savings and loan association.
• D)common stock bank.

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Definitions:

Accounting Principle

Fundamental concepts or guidelines that govern the field of accounting and instruct the recording and reporting of financial transactions.

Reporting Entity

An entity for which there are users who rely on its financial statements as a major source of financial information about the entity.

Retrospective Approach

An accounting method that applies a new policy or standard to transactions, events, and conditions as if the new policy or standard had always been in effect.

Accounting Change

An alteration in accounting principles, estimates, or reporting methodologies in the preparation and presentation of financial statements.