The Table Below Shows Data (In Millions) for Sun Trust

question 475

Multiple Choice

The table below shows data (in millions) for Sun Trust Banks in September 2017 and September 2018. Suppose that the desired reserve ratio is 3 percent. The data show that Sun Trust ________ make more loans in 2017 and ________ make more loans in 2018.

• A) can; can
• B) can; cannot
• C) cannot; cannot
• D) cannot; can

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Definitions:

Sales

Revenue generated from goods or services sold by a company.

Direct Method

A cost allocation method that assigns service department costs directly to production departments without considering services provided between service departments.

Accounts Receivable

represents the money owed to a company by its customers for goods or services delivered but not yet paid for.

Prepaid Expenses

Payments made for goods or services before receiving them, recorded as assets in the balance sheet until they are utilized or consumed.