Elena Is a College Freshman and Needs a Checking Account

question 54

Multiple Choice

Elena is a college freshman and needs a checking account.What type of financial institution should she choose?

• A)Credit union
• B)Commercial bank
• C)Savings institution
• D)IRS

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Definitions:

Wages Expense

An accounting term that refers to the total cost incurred by a company to pay its employees, recognized in the period employees perform the work.

Book Purposes

Refers to accounting methods and practices used to prepare financial statements for regulatory reporting, as opposed to tax calculations.

Interperiod Tax Allocation

An accounting technique that aims to match tax expenses with the revenues for the period in which they were earned, regardless of when taxes are paid.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxation by governmental authorities.