Which Set of Statements Is Correct

question 35

Multiple Choice

Which set of statements is correct?

• A) The Federal Reserve has 12 regional banks. The Board of Governors has fourteen members, each serving a 7-year term.
• B) The Federal Reserve has 14 regional banks. The Board of Governors has twelve members, each serving a 7-year term.
• C) The Federal Reserve has 12 regional banks. The Board of Governors has seven members, each serving a 14-year term.
• D) The Federal Reserve has 14 regional banks. The Board of Governors has seven members, each serving a 12-year term.

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Definitions:

Adjusting Entry

An accounting record made to update the financial statements to reflect transactions that have occurred but are not yet recorded.

Interest Expense

The cost incurred by an entity for borrowed funds, usually presented as an expense in the income statement.

Times Interest Earned Ratio

A metric that measures a company's ability to meet its debt obligations by comparing income before interest and taxes to interest expenses.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue, representing the company's bottom line.