Which of the Following Statements Is False

question 21

Multiple Choice

Which of the following statements is false?

• A) It is not possible for a bank to invest all of its funds in profitable loans or securities.
• B) All states now permit statewide branch banking.
• C) Regulation Q established interest rate ceilings on time and savings deposits.
• D) The depositors of a bank are creditors and hence have a claim that is superior to that of stockholders in the event of liquidation.

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Definitions:

Cost of Goods Sold

The total cost directly tied to the production of the goods sold by a company.

Job-Order Costing System

A cost accounting system that assigns manufacturing costs to an individual product or batches of products, often used when products are distinctly different.

Overapplied

A situation where the allocated manufacturing overhead cost is more than the actual overhead cost incurred.

Underapplied

A condition where allocated manufacturing overhead for a period is less than the actual overhead incurred, causing unabsorbed overhead costs.