When the Fed Prints and Issues Bills, It Creates

question 28

Multiple Choice

When the Fed prints and issues bills, it creates:

• A)a financial liability for the holder of the IOU.
• B)a financial asset for itself.
• C)a real asset.
• D)money.

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Definitions:

Deferral Adjusting Entry

An accounting entry made to defer the recognition of revenue or expenses to a future period.

Unearned Revenue

Money received by an entity for a service or product that has yet to be delivered or completed.

Interest Revenue

Income earned from lending money or from investments in interest-bearing accounts or securities.

Matching Revenue

The accounting principle of recognizing revenue and the related expenses in the same accounting period to accurately report profit.