A ________ Is Not a Specific Security but an Arrangement

question 41

Multiple Choice

A ________ is not a specific security but an arrangement whereby a bank or security dealer sells specific marketable securities to a firm and agrees to repurchase the securities in the future.

• A) negotiable certificate of deposit
• B) repurchase agreement
• C) money market mutual fund
• D) commercial paper issue

---

Definitions:

Prepaid Items

Prepaid items refer to expenses paid in advance for goods or services to be received in the future.

Adjusting Entries

These are journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Expense Account

An account used to track expenditures or costs incurred by a business or an individual for operational purposes.

Asset Account

An account that tracks resources owned or controlled by a business or individual which have economic value.