Refer to Exhibit 13-1

question 179

Multiple Choice

Refer to Exhibit 13-1.Suppose that the Federal Reserve conducts open market operations by purchasing $1,000 worth of government securities from Bank A.As a result,Bank A finds itself with $1,000 in excess reserves that it lends out and those funds end up in Bank B.What dollar value goes in blanks (A) and (B) ,respectively?.

• A) $100; $90
• B) $10; $90
• C) $10; $990
• D) $100; $900

Recognize the value and integration of enterprise resource planning (ERP) systems across various organizational functions.

Identify the function and necessity of subsidiary ledgers and special journals in accounting systems.

Understand the different types of journals (cash payments, cash receipts, purchases) and their respective uses in accounting transactions.

Comprehend the relationship between subsidiary ledgers and control accounts.

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Definitions:

Marginal Cost

The swell in cumulative expenditure due to the manufacture of an additional unit of a product or service.

Total Revenue

Total Revenue refers to the total receipts from sales of goods or services that is calculated by multiplying the price per unit by the number of units sold.

Profits

The financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes.