Which of the Following Statements Are Correct

question 72

Multiple Choice

Which of the following statements are correct?
I. The Federal Reserve's monetary policy must be approved by the President of the United States
.
Ii. The Federal Reserve Board of Directors meets approximately every six months to review the state of the economy and determine monetary policy.
Iii. The Federal Reserve has determined it will use the monetary base as its policy instrument.

• A)iii only
• B)ii only
• C)i and ii
• D)i only
• E)None of the above answers is correct.

---

Definitions:

Permanent Accounts

Permanent accounts refer to the balance sheet accounts whose balances are carried over into the next accounting period, including assets, liabilities, and equity accounts.

Revenue Recognition Principle

An accounting principle that dictates the specific conditions under which revenue is recognized or recorded, ensuring it's captured in the period it is earned.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous accounting period, simplifying record-keeping.

Profit Margin

A financial ratio calculated as net income divided by revenue, expressing the percentage of each dollar of revenue that remains as profit.