If the Total Liabilities of Bank a Are Less Than

question 202

Multiple Choice

If the total liabilities of Bank A are less than its total assets but its short-term liabilities are greater than its short-term assets,Bank A is:

• A) both liquid and solvent.
• B) both illiquid and insolvent.
• C) liquid,but insolvent.
• D) illiquid,but solvent.

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Definitions:

Product Costs

All costs incurred to acquire or manufacture a product, including direct materials, direct labor, and manufacturing overhead expenses.

Period Costs

Expenses that are not directly tied to the production of goods, such as sales and marketing expenses, which are expensed in the period they are incurred.

Factory Building Utilities

Expenses related to utilities within a factory building, including costs for electricity, gas, water, and sewage.

Direct Costs

Costs directly associated with the manufacturing of specific products or services, including labor and raw materials.