Which of the Following Statements Is FALSE

question 72

Multiple Choice

Which of the following statements is FALSE?

• A)A financial intermediary specializes in the production of information.
• B)A financial intermediary reduces its risk exposure by pooling its assets.
• C)A financial intermediary benefits society by providing a mechanism for payments.
• D)A financial intermediary may act as a broker to bring together funds deficit and funds surplus units.
• E)A financial intermediary acts as a lender of last resort.

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Definitions:

Income Summary

An account used in the closing process that summarizes the revenues and expenses for an accounting period before transferring the net income or loss to owner's equity.

Revenue and Expense Accounts

Accounts in the general ledger that track the income generated from sales and the costs incurred during business operations, respectively.

Worksheet

A document or spreadsheet used for planning, adjusting entries, and preparing financial statements before they are finalized in official reports.

Income Statement

A financial statement that reports a company's financial performance over a specific period by detailing revenues, expenses, and net income.