Which Combination of Activities Within a Single Financial Institution Is

question 30

Multiple Choice

Which combination of activities within a single financial institution is least likely to lead to conflicts of interest?

• A)auditing and management advisory services
• B)commercial banking and investment banking
• C)assessment of credit quality and consulting
• D)consumer lending and business lending

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Definitions:

Accounts Receivable

Money owed to a company by its customers from sales or services rendered on credit, recorded as an asset on the balance sheet.

Accounts Payable

Liabilities of a business arising from credit purchases from suppliers, displayed on the company's balance sheet as money owed.

Assets Sold

The sale of company assets, which could include equipment, properties, or other resources owned by the company.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest.