Managerial Accounting Provides Information That Would Probably Be Most Beneficial

question 121

Multiple Choice

Managerial accounting provides information that would probably be most beneficial to:

• A)the IRS
• B)financial analysts
• C)a lending officer of the bank
• D)a middle manager of the company
• E)shareholders

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Definitions:

Reserve Requirement

A central bank regulation that sets the minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lend out.

Deposits

Funds placed into an account at a banking institution for safekeeping and possible interest accrual.

Reserves

Reserves refer to funds or other assets that banks or financial institutions hold to meet unexpected demands or regulatory requirements.

Required Reserve Ratio

A regulation set by central banks determining the minimum amount of reserves that banks must hold against deposits, affecting money supply.