Cash Flows Arising from Each of the Following Activities of a Financial

question 26

Multiple Choice

Cash flows arising from each of the following activities of a financial institution may be reported on a net basis:
I cash receipts and payments for the acceptance and repayment of deposits with a fixed maturity date
II the placement of deposits with and withdrawal of deposits from other financial institutions
III cash advances and loans made to customers and the repayment of those advances and loans
IV cash receipts and payments for the acceptance and repayment of deposits with no fixed maturity date

• A) I , II and IV;
• B) II, III and IV;
• C) I, III and IV;
• D) I, II and III.

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Definitions:

Approved Vendor

A supplier that has been vetted and authorized by a company to provide goods or services.

Receiving Report

A document that records the details of goods received by a company, ensuring the quantities and quality match the purchase order.

Initial Record

The first entry or documentation of a transaction or event in the accounting records.

Retail Inventory Method

An accounting method used to estimate the value of a store's merchandise by converting retail prices to cost prices.