Table 21-3. -Refer to Table 21-3.If $1,000 Is Deposited into the First

question 416

Multiple Choice

Table 21-3.

-Refer to Table 21-3.If $1,000 is deposited into the First Bank of Fairfield,and the bank takes no other actions,its

• A) reserves will increase by $200.
• B) liabilities will decrease by $1,000.
• C) assets will increase by $1,000.
• D) reserves will increase by $800.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in the net profit or loss for that period.

Accounts Payable

The amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Inventories

Inventories consist of raw materials, work-in-progress, and finished goods held by a company during the production and sales process, awaiting sale.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly involved in creating the product.