The Use of Temporary Accounts Helps Managers,at Least in Part,to

question 33

Multiple Choice

The use of temporary accounts helps managers,at least in part,to assess

• A)liquidity.
• B)stability.
• C)profitability.
• D)efficiency.

---

Definitions:

Trust Fund

A legal arrangement through which assets are held by a third party for the benefit of another party or parties.

Compounded Quarterly

The process in which interest is calculated and added to the principal amount every quarter of the year.

Deposits

Money placed into a bank account or given as a security for a contractual agreement.

Semi-annually

Occurring twice a year, typically every six months.