Which of the Following Is Not a Generally Practiced Method

question 59

Multiple Choice

Which of the following is not a generally practiced method of presenting the income statement?

• A) Including prior period adjustments in determining net income.
• B) The condensed income statement.
• C) The consolidated income statement.
• D) Including gains and losses from discontinued operations of a component of a business in determining net income.

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Definitions:

Required Reserves

Required Reserves refer to the minimum reserve of cash that banks must hold either in their vaults or on deposit with the central bank, as mandated by financial regulations.

Total Reserves

The sum of a bank's deposits held in the central bank plus its cash on hand, serving as a buffer against potential withdrawals.

Lend Reserves

The practice by financial institutions of providing loans out of their reserves, often influencing the money supply in the economy.

Money Supply

All monetary resources that are accessible in an economy at a particular timeframe, including but not limited to cash, coins, and the deposits in checking and savings accounts.