Which of the Following Is an Example of a Use

question 38

Multiple Choice

Which of the following is an example of a use of funds?

• A)A customer withdraws $1,000 from their account
• B)A borrower repays $1,500 of a loan they have received
• C)A bank issues a $1,000,000 CD
• D)A bank sells $5,000,000 of T-Bills
• E)None of the options is a use of funds

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Definitions:

Supplier's Account

An account kept by a business to record transactions (like purchases and payments) related to a specific supplier.

Purchases Journal

A specialized accounting journal used to record all purchases of merchandise, inventory, and other supplies on credit.

Life Vests

Safety devices designed to keep an individual afloat in water and reduce the risk of drowning.

Customer Account

An account that records all transactions between a business and its customers, including purchases, payments, and credits.