Which of the Following Is a True Statement

question 163

Multiple Choice

Which of the following is a true statement?

• A)excess reserves = actual reserves - required reserves
• B)excess reserves = deposits - required reserves
• C)excess reserves = deposits - loans
• D)excess reserves = loans - required reserves

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Definitions:

Overhead Applied

The portion of overhead costs allocated to specific jobs or production activities based on a predetermined rate.

Predetermined Rate

An estimated cost rate established before the start of a period and used to apply costs uniformly throughout the period.

Actual Cost

The realized expenses incurred in the production or acquisition of goods and services, as opposed to estimated or standard costs.

Overhead Incurred

The actual overhead expenses that a company has experienced during a specific period, which may include costs related to rent, utilities, or administrative salaries.