A Formal Regulatory Document That Prescribes Corrective Action for a Problem

question 16

Multiple Choice

A formal regulatory document that prescribes corrective action for a problem institution is called a:

• A) cease and desist order.
• B) capital request.
• C) memorandum of understanding.
• D) quality assurance directive.
• E) national bank order.

---

Definitions:

Gross Method

An accounting treatment for purchases discounts where the discount is not recognized until payment is made within the discount period.

Net Method

An accounting approach to the purchase of goods that incorporates discounts for early payment directly in the reported cost of purchases.

Recording Invoices

The process of documenting sales or purchases in the accounting records, typically by entering them into a journal or ledger.

Discount Recognized

The process of recording in the financial accounts the discount received or given on transactions, affecting the actual value recorded.