A Sweep Account Is a Checking Account That ________

question 86

Multiple Choice

A sweep account is a checking account that ________.

• A)bears interest, allowing depositors to write checks without tying up money for a specific period of time
• B)never has funds as they are drawn from a master account
• C)automatically moves all funds in a company's checking account above a predetermined minimum into an interest-bearing account
• D)need to be reviewed and updated on a regular basis

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Definitions:

Raw Material

The basic material from which products are made, not yet subjected to any processing or manufacturing.

Material R

A specified type of raw material used in the production of goods, referred to as "Material R" for distinction purposes.

Fixed Expenses

Costs that do not change with the level of output or sales and remain constant over a period, such as rent or salaries.

Discontinuing Product

The process of ceasing the manufacture, sale, and support of a product line or brand.