Which of the Following Statements Is NOT Correct

question 19

Multiple Choice

Which of the following statements is NOT correct?

• A)The five largest U.S. banks now account for more than 50 percent of bank assets.
• B)Acquisitions have been a convenient method for banks to grow quickly and capitalize on economies of scale.
• C)The banking industry has become less concentrated in recent years.
• D)All of these statements are correct.

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, reflecting the fundamental profitability of the goods sold.

Cost Method

An accounting approach used for investments, wherein the investment is recorded at cost and adjusted only for dividends received, impairments, or changes in fair value.

Consolidated Income Statement

A financial statement that presents the combined financial results of a parent company and its subsidiaries as one single entity.

Income Tax Expense

The amount of money a company owes in taxes based on its taxable income for a given fiscal period.