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Cost Should Not Be Used to Guide the Choice of Initial

question 22

True/False

Cost should not be used to guide the choice of initial assessment methods.


Definitions:

Processing

The action of performing a series of mechanical or chemical operations on something in order to change or preserve it.

Clearing

The process of reconciling purchases and sales of various options, futures, or securities, and the direct transfer of funds from one financial institution to another.

Net Float

The difference between checks written against and deposited in an account, before those checks have been cleared and settled.

Money Market Securities

are short-term financial instruments, such as treasury bills and commercial paper, that provide liquidity and relatively low risk.

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