Which of the Following Is NOT an Advantage of a Finance

question 51

Multiple Choice

Which of the following is NOT an advantage of a finance company over a commercial bank in providing services to small business customers?

• A)Finance companies are less willing to accept risky customers than are banks.
• B)Finance companies are not subject to regulations that restrict the type of products and services they can offer.
• C)Finance companies often have substantial industry and product expertise.
• D)Finance companies generally have lower overhead than banks.

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Definitions:

Supplies Expense

The cost of consumable items used in the operation of a business, recorded as an expense during the period in which they are consumed.

Adjusted Trial Balance

A trial balance that has been adjusted for any journal entries or corrections, ensuring the accuracy of financial statements.

Net Income

Net income of the company, which is what remains after deducting taxes, expenses, and other costs from its total revenue.

Period

In finance and business, a period refers to a specific duration of time considered for accounting, reporting, or evaluation purposes.