_____________ Represents Funds Set Aside for Contingencies,such as Legal Action

question 12

Short Answer

_____________ represents funds set aside for contingencies,such as legal action against the institution,as well as providing a reserve for dividends expected to be paid but not yet declared,and a sinking fund to retire stock or debt in the future.

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Definitions:

Company's Records

Official documents and files that contain the historical data, transactions, and operational information of a business.

Canceled Check

A check that has been paid and processed by a bank, rendering it invalid for future use or payment.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement, to ensure accuracy.

Company's Records

Documentation and files maintained by a business for accounting, legal, and operational purposes.