As the Structures of S&L Balance Sheets and the Consequent

question 26

Multiple Choice

As the structures of S&L balance sheets and the consequent maturity mismatch led to widespread disaster, the Garn-St. Germain Act of 1982 expanded the types of assets in which S&Ls could invest. The acceptable list of investments now includes ________.

• A) consumer loans .
• B) nonconsumer loans.
• C) municipal securities.
• D) All of these

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Definitions:

Chart of Accounts

A structured list of all the financial accounts in an organization's general ledger, categorized by short and long-term liabilities, assets, revenue, and expenses.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period of time.

Trial Balance

An accounting report that lists the balances of all ledgers accounts to verify that the total debits equal the total credits, used for internal purposes to check for errors.

Ledger

A book or collection of financial accounts in which transactions are recorded.