Which of the Following Statements Is Not True

question 15

Multiple Choice

Which of the following statements is not true?

• A) The largest source of funds for banks to lend comes from the owner's capital.
• B) Transaction deposits make up less than 10 percent of banks sources of funds.
• C) The largest sources of funds for banks are non-transactions accounts.
• D) Borrowing is a larger source of funds for banks than transaction deposits.

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Definitions:

Statement Of Comprehensive Income

A financial statement that displays all changes in equity during a period except those resulting from investments by and distributions to the company’s shareholders.

Other Comprehensive Income

Income that includes all changes in equity from non-owner sources, such as foreign exchange adjustments or unrealized gains/losses on certain investments, not included in net income.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) is represented as a proportion of the total account.

Net Sales

The amount of sales revenue remaining after deducting sales returns, allowances, and discounts.