Which One of the Following Statements Is Correct

question 245

Multiple Choice

Which one of the following statements is correct?

• A) Short-term assets that trade in the money market account mature in two years or less.
• B) Banks forbid the transfer of excess funds from a chequing account into an investment account on a daily basis.
• C) Firms sometimes create a temporary cash surplus because they are saving funds for a major expenditure.
• D) Cyclical firms increase their long-term financing such that they continually have a cash surplus.
• E) Corporations are not permitted to use money market mutual funds but can use bank money market accounts.

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Definitions:

Property

Assets owned by an individual or a business, encompassing both tangible (land, buildings) and intangible (patents, trademarks) items.

Funeral Expenses

Costs incurred for services and merchandise related to the burial or cremation of a deceased person.

Journal Entry

A record in the accounting journal that represents a business transaction and reflects changes in accounts.

Claims Against Estate

Legal claims or debts against a deceased person's estate, which must be settled before assets can be distributed to heirs.