By Removing a Tangible Asset from the Business (A Debit)

question 94

Multiple Choice

By removing a tangible asset from the business (a debit) , the books will be ___________ by the exact amount of the tangible asset misappropriated.

• A) Journal Entries
• B) Out-of-balance
• C) False debits
• D) None of all

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Definitions:

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to keep the account open.

Initial Margin

The minimum amount of funds required to open a new position in a securities or futures contract, intended to cover some of the credit risk of market participants.

Primary Market

The financial market for new securities issues, where companies sell new stocks and bonds directly to investors.

Investment Bankers

Firms specializing in the sale of new securities to the public, typically by underwriting the issue.