Which of the Following Is NOT Fundamental to the Financial

question 61

Multiple Choice

Which of the following is NOT fundamental to the financial stability of banks?

• A)Their profitability
• B)Their liquidity
• C)Their holding adequate equity funds
• D)Their access to alternative funding sources
• E)All of these are fundamental to a bank's financial stability.

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Definitions:

Liability

An obligation of the company arising from past transactions or events, the settlement of which may result in the transfer of assets, provision of services, or other yielding of economic benefits in the future.

Accounts Payable

Liabilities representing amounts the company owes to suppliers or creditors for goods and services received but not yet paid for.

Vouchers

Documents representing an internal intent to make a payment to an external party, often used in accounts payable processes.

Written Authorizations

Official documents or agreements that grant permission or rights, often used to approve financial transactions or operations.