Choose the Statement That Is Incorrect

question 23

Multiple Choice

Choose the statement that is incorrect.

• A)A chartered bank is a private firm, chartered under the Bank Act of 1992 to receive deposits and make loans.
• B)A credit union is a cooperative organization that operates under the Co-operative Credit Association Act of 1992.
• C)A caisse populaire is similar to a credit union.
• D)Trust and mortgage loan companies receive deposits, make loans, and act as trustee for pension funds and for estates.
• E)Trust and mortgage loan companies have the bulk of the deposits in M1 and M2.

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Definitions:

Operating Activities

Activities that relate directly to the primary revenue-producing operations of an organization, such as sales and service delivery.

Fixed Asset

Long-term tangible property that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment.

Operating Activities

Activities that relate directly to the primary operations of the company, such as production, distribution, marketing, and selling of goods and services.

Indirect Method

A way of reporting cash flows from operating activities in the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate the cash from operations.