The Interest Rate That the Fed Charges When It Lends

question 91

True/False

The interest rate that the Fed charges when it lends reserves to banks is called the federal funds rate.

Identify and explain the implications of different inventory turnover ratios.

Understand the effects of using different inventory cost formulas like FIFO, average cost, and specific identification under varying market conditions.

Recognize the factors that influence the inclusion of goods in the physical count of inventory.

Understand the accounting treatment for goods held on consignment.

---

Definitions:

Easement by Prior Use

A right that is automatically granted for the continued use of a portion of property because it was visibly and continuously used prior to the division of the property.

Implication

A conclusion that can be drawn from something, although it is not explicitly stated.

Prescription

Legal acquisition of rights through the continuous and habitual exercise of those rights over a lengthy period.

Reservation

The act of keeping something, such as a right or property, specifically withheld or protected from being given up or used.