26-70 Servicing a Pass?through Security Refers to

question 32

Multiple Choice

26-70 Servicing a pass?through security refers to

• A)an FI processing of all payments.
• B)an FI provision of clearing services to set up the pass?through.
• C)broker/dealer services provided by the FI to the ultimate holders of the pass?through.
• D)guarantee by the FI of all principal and interest payments.
• E)an FI provision of liquidity services to the ultimate holders of the pass?through.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product.

Journal Entry

A record in the accounting ledger that represents a single transaction and its effect on accounts.

Process Costing System

An accounting method used for homogenous products, allocating production costs based on the processes or departments through which the products pass.

Work in Process Inventory

Items that are in the process of being produced but are not yet complete.