The Most Significant Change in the Economic Environment That Changed

question 84

Multiple Choice

The most significant change in the economic environment that changed the demand for financial products in recent years has been

• A)the aging of the baby-boomer generation.
• B)the dramatic increase in the volatility of interest rates.
• C)the dramatic increase in competition from foreign banks.
• D)the deregulation of financial institutions.

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Definitions:

Book Value

The net value of an asset or liability recorded on the balance sheet, often different than its fair market value.

Building Account

An account used to track the costs associated with the construction or improvement of a building until the project is completed and the asset is ready for use.

Adjusted Trial Balances

An internal document that lists all accounts and their balances after adjustments are made for errors, accruals, and deferrals, used for preparing financial statements.

Adjusting Entries

Financial records made upon the completion of an accounting cycle to allocate gains and deductions to the actual period in which they occurred.