Which of the Following Is True

question 26

Multiple Choice

Which of the following is true?

• A) All banks must process all checks through the Federal Reserve System.
• B) All banks must process all "on them" checks through the Federal Reserve System.
• C) The Federal Reserve System includes at least one regional bank in each state.
• D) The Federal Reserve System is not permitted to charge a fee for its processing services.
• E) Many banks use private clearinghouses instead of the Federal Reserve System to process checks.

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Definitions:

Balance Entered

A term that is not typically used in standard financial or accounting lexicon; it could imply recording or entering a balance into financial records. NO.

Trial Balance Preparation

The process of creating a trial balance, which is a bookkeeping worksheet listing the balance of all ledgers for checking the mathematical correctness of the books.

Account Balance

The amount of money in a financial repository at any given moment, which can represent credit or debit balances.

Horizontal Analysis

An analytical technique in financial statement analysis where the amounts of financial data for multiple periods are compared to detect trends and changes.