Which of the Following Is a Factor That Affects a Bank's

question 103

Multiple Choice

Which of the following is a factor that affects a bank's decision as to which nondeposit sources of funds to use to cover its projected funds gap?

• A)The relative cost of raising the funds.
• B)The length of time the funds will be required.
• C)The risk associated with each source of funds.
• D)The size of the bank.
• E)All of the options are correct.

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Definitions:

Deferred Income Tax Liability

A tax obligation due in the future for income that has been recognized in the financial statements before it is taxable.

Income Tax Expense

The cost to a company for its taxable income, calculated according to the applicable tax laws governing the period.

Accrued Vacation Benefits

The amount of vacation time earned by employees but not yet taken or paid out, often recorded as a liability on the employer's balance sheet.

Adjusting Entry

An accounting entry made in the general ledger to update the book values of assets, liabilities, revenues, and expenses at the end of an accounting period.