Which Type of Bank Account Would Be Best for Maintaining

question 21

Multiple Choice

Which type of bank account would be best for maintaining funds that are used for paying seasonal expenses, such as insurance premiums?

• A) Regular savings account
• B) Money market savings account
• C) Interest-bearing checking account that requires a high minimum balance
• D) Regular checking account

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Definitions:

Line-By-Line Method

The line-by-line method is a technique used in consolidating the financial statements of a parent company and its subsidiaries, where each item of the subsidiary is added line by line to those of the parent.

Technical Services

Services that require specialized skills or knowledge, often in the fields of engineering, IT, or other technical disciplines.

Fair Value

An accounting term that refers to the estimated price at which an asset or liability could be exchanged in an arm's length transaction between knowledgeable, willing parties.

Profit On Services

Income generated from the provision of services, calculated by subtracting the cost of delivering those services from the revenue earned.