An Entity That, as Part of Its Normal Business Operations

question 10

Multiple Choice

An entity that, as part of its normal business operations, makes loans or extends credit to the general public, is referred to as a:

• A) financial institution.
• B) savings and loan.
• C) federal reserve bank.
• D) FDIC.

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Definitions:

Production Departments

Departments within an organization responsible for manufacturing or producing the products or services the company offers.

Step-Down Method

An accounting technique used to allocate overhead costs to related departments progressively, moving from departments that provide services to other departments first.

Administration Department

A functional area within an organization responsible for overseeing the operations and ensuring the business runs smoothly.

Information Technology

The use of computers and telecommunications equipment to store, retrieve, transmit, and manipulate data.