Dealers Are Allowed to Trade for Their Own Account If

question 348

Multiple Choice

Dealers are allowed to trade for their own account if:

• A) The dealers have good track records in their dealing both for the institution and for themselves.
• B) There has been no previous conflicts of interest in the dealing room.
• C) There is a clearly laFd down policy.
• D) The dealers see no conflict of Interest in such dealing.

---

Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, effectively resetting the temporary accounts for the next period.

Accounting Cycle

The collective process of recording and processing all financial transactions of a company, from when the transaction occurs, to its representation in the financial statements.

Beginning Assets

Beginning assets refer to the value of all assets owned by a company at the start of an accounting period, encompassing resources like cash, inventory, and property.

Ending Liabilities

The total debts and financial obligations a company owes at the end of a reporting period.