The Largest Asset Item for Most Banks Is

question 233

Multiple Choice

The largest asset item for most banks is:

• A)​cash.
• B)​bonds.
• C)​loans.
• D)​federal cash reserves.

Define and categorize different types of expenses in accounting.

Understand the concept and calculation of gross profit.

Comprehend the significance of liquidity in financial analysis.

Recognize the importance and procedure for tracking merchandise returns and allowances.

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Definitions:

Manufacturing Margin

The difference between the cost of goods produced and the sales revenue from those goods, indicating the profitability of manufacturing activities.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and contribute to profits.

Gross Margin

The financial metric representing the difference between revenue and the cost of goods sold, divided by revenue, often expressed as a percentage. It indicates how efficiently a company is using its resources to produce goods.

Contribution Margin

Contribution margin is the revenue remaining after deducting variable costs, used to cover fixed costs and profit.