Which of the Following Statements Is True

question 4

Multiple Choice

Which of the following statements is true?

• A)The BIS requires banks to define an adverse change in rates as being the 95^th percentile.
• B)The BIS requires banks to define an adverse change in rates as being the 97.5^th percentile.
• C)The BIS requires banks to define an adverse change in rates as being the 99^th percentile.
• D)The BIS requires banks to define an adverse change in rates as being the 99.5^th percentile.

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Definitions:

Accrue Salaries Payable

Accrue Salaries Payable involves recording the salaries earned by employees that have not yet been paid, recognizing the liability before the cash is disbursed.

Closing Entry

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thus preparing the books for the next period.

Reversing Entry

An accounting entry made at the beginning of a period to reverse the effects of certain adjustments made in the previous period.