Which of the Following Is an Example That Can Help

question 33

Multiple Choice

Which of the following is an example that can help explain increased profits for large financial holding companies?

• A) Financial holding companies offer a wide array of services under many brand names.
• B) Financial holding companies need only one CEO, one Board of Directors, and one computer system regardless of size.
• C) Financial holding companies are not well diversified and receive a higher return for the higher risk.
• D) Financial holding companies are exempt from having to pay for FDIC insurance.

---

Definitions:

Perpetual Inventory Method

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

General Journal Entry

A general journal entry is a record in the general journal that is used to document business transactions according to the double-entry bookkeeping system.

Perpetual Inventory Method

The perpetual inventory method continuously updates inventory records and cost of goods sold every time a transaction occurs.

General Journal Entry

The initial recording of financial transactions in the general journal, indicating the accounts and amounts to be debited and credited.