The Balance in the ________ Is Used to Check the Accuracy

question 152

Multiple Choice

The balance in the ________ is used to check the accuracy on the ending balance of the statement of cash flows.

• A)asset and liability accounts
• B)liability accounts
• C)cash and cash equivalent accounts
• D)asset accounts

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Definitions:

Financial Intermediation

A process where financial institutions serve as intermediaries between savers and borrowers, facilitating the flow of funds in the economy.

Intermediaries

Entities that act as middlemen in transactions, facilitating trade between buyers and sellers without owning the product.

Index Funds

Index funds are investment funds that replicate the portfolio of a specific index, aiming to achieve similar returns to the index they track.

Credit Risk

The potential for loss due to a borrower's failure to make payments on any type of debt.