As Compared to Natural Accounts, FUNCTIONAL ACCOUNTS

question 36

Multiple Choice

As compared to natural accounts, FUNCTIONAL ACCOUNTS:

• A) are the accounts to which various costs are charged in the normal accounting cycle.
• B) show the purpose for which expenditures are made.
• C) include items such as storing, salaries, and taxes.
• D) All of these.
• E) Both are the accounts to which various costs are charged in the normal accounting cycle; and include items such as storing, salaries, and taxes.

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Definitions:

Bond Dealers

Entities that trade in bond securities, acting as intermediaries between buyers and sellers in the bond market.

Default Risk Premiums

Additional returns that investors demand from a security issuer to compensate for the risk of default.

Treasury Bond

A government-issued debt instrument with a guaranteed interest rate, intended for long-term investment, with a maturity period exceeding ten years.

Boeing

A multinational corporation based in the United States that specializes in designing, manufacturing, and marketing airplanes, helicopters, rockets, satellites, and telecommunications gear.