If a Bank Receives $1,000 in Currency as a New

question 43

True/False

If a bank receives $1,000 in currency as a new deposit,its ability to make loans increases by $1,000.

---

Definitions:

Master Budget

A comprehensive financial planning document that includes all of the organization's financial plans.

Credit Sales

Sales made to customers on credit, allowing them to purchase now and pay later, creating accounts receivable for the company.

Selling Expense

Costs incurred to promote, sell, or distribute a product or service, such as advertising and commission.

Administrative Expense

Costs related to the general administration of a business, including salaries of senior executives, costs of general services, and office supplies among others.