The ?Gures in the Table Are for a Single Commercial

question 47

Multiple Choice

$$\begin{array} { | l | r | r | r | } \hline & & \text { Assets } & \text { Liabilities and Net Worth } \\\hline \text { Stock Shares } & \$ 400 & & \\\hline \text { Reserves } & 40 & & \\\hline \text { Property } & 300 & & \\\hline \text { Securities } & 160 & & \\\hline \text { Loans } & 80 & & \\\hline \text { Demand Deposits } & 180 & & \\\hline\end{array}$$ The ?gures in the table are for a single commercial bank. All ?gures are in thousands of dollars. If the required reserve ratio is 10 percent, the bank has excess reserves of

• A) $28,000.
• B) $22,000.
• C) $18,000.
• D) $16,000.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Perpetual Inventory Records

The continuous tracking of inventory levels and updates in real-time, showing the quantity of inventory on hand at all times.

Credit for Returns

A financial adjustment made by a seller to the account of a buyer to reflect returned goods.

Discount Period

The discount period is the time frame during which a buyer can take advantage of a purchase discount offered by the supplier for early payment.