Use the Following Information to Answer Questions -If Bank A's Average Return on Its Loan Portfolio Is

question 37

Multiple Choice

Use the following information to answer questions:
$\begin{array}{lll}&\text { National Banks } & \text { Bank A } & \text { Bank B } \\\text { Real Estate Loans } & 60 \text { percent } & 30 \text { percent } & 56 \text { percent } \\\text { Consumer Losts } & 20 \text { percent } & 30 \text { percent } & 28 \text { percent } \\\text { Commercial Loans} & 20 \text { percent } & 10 \text { percent } & 16 \text { percent }\end{array}$
-If Bank A's average return on its loan portfolio is lower than that of Bank B's,

• A)its risk-adjusted return is higher than Bank B's.
• B)its risk-adjusted return is lower than Bank B's.
• C)its standard deviation is lower than Bank B's.
• D)its standard deviation is higher than Bank B's.
• E)its risk-adjusted return is lower than Bank B's and its standard deviation is higher than Bank B's.

Define and compute an employer's unemployment taxes, including FUTA and SUTA.

Understand the concept of estimated liabilities and identify common types.

Calculate employer payroll tax expenses accurately.

Record warranty expenses and understand how they affect financial statements.

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Definitions:

Bank Checking Account

A bank account that allows individuals and businesses to deposit money and withdraw funds, which can be accessed using checks, automated teller machines (ATMs), and electronic debits.

Cash Equivalents

Highly liquid investments that are usually reported with cash on the balance sheet.

Petty Cash Receipts

Petty Cash Receipts are documents that record small cash payments made from a petty cash fund, used for minor or incidental expenses.

Petty Cash Account

A small amount of cash on hand used for paying expenses too small to merit writing a check.