The Principal-Agent Problem That Exists for Bank Trading Activities Can

question 33

Multiple Choice

The principal-agent problem that exists for bank trading activities can be reduced through

• A)creation of internal controls that combine trading activities with bookkeeping.
• B)creation of internal controls that separate trading activities from bookkeeping.
• C)elimination of regulation of banking.
• D)elimination of internal controls.

---

Definitions:

Cost Reconciliation Report

A financial document that adjusts and aligns cost elements within a specific period or project to ensure accounting accuracy.

Units Transferred

The total number of units moved from one stage of production to the next or from one department to another during a period.

Department

A distinct area, division, or branch of an organization designated to perform specific functions or tasks.

Cost Reconciliation Report

A financial report that explains the differences or reconciles the variances between the cost of beginning and ending inventories in cost accounting.