The Account That Is Built Up by Annual Noncash Expense

question 108

Multiple Choice

The account that is built up by annual noncash expense deductions and is subtracted from Gross Loans on the Report of Condition is:

• A)unearned income.
• B)nonperforming loans.
• C)allocated loan risk deductions.
• D)allowance for possible loan losses.
• E)None of the options are correct.

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Definitions:

Positive

In the context of economics, a situation or correlation in which an increase in one variable leads to an increase in another variable.

Normative

Pertaining to statements or norms that express values, judgments, or opinions on what should be, rather than what is.

Normative Statement

A type of statement that expresses a value judgment about what ought to be, based on personal beliefs rather than hard facts.

Normative Statement

A statement that expresses a value judgment or opinion about what ought to be, rather than what is empirically observable.