Which of the Following Statements Is True

question 47

Multiple Choice

Which of the following statements is true?

• A)Economically speaking, contingent assets and liabilities are contractual claims that might or might not impact on the economic value of a bank.
• B)Economically speaking, contingent assets and liabilities are contractual claims that do not impact on the economic value of a bank.
• C)Economically speaking, contingent assets and liabilities are contractual claims that directly impact on the economic value of a bank.
• D)Economically speaking, contingent assets and liabilities are contractual claims that indirectly impact on the economic value of a bank.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Absorption Costing

This method includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Markup

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost price.

Selling Price

The amount for which a product or service is sold to customers.