On a Bank's T-Account,which Are Part of the Banks Liabilities

question 74

Multiple Choice

On a bank's T-account,which are part of the banks liabilities?

• A)both deposits made by its customers and reserves
• B)deposits made by its customers but not reserves
• C)reserves but not deposits made by its customers
• D)neither deposits made by its customers nor reserves

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Definitions:

Inventory Turnover

A ratio that measures the number of times inventory is sold or used over a period, indicating the efficiency of inventory management.

Average Sale Period

This measure indicates the average duration it takes for a company to turn its inventory into sales.

Operating Cycle

The duration of time from the acquisition of inventory to the collection of cash from receivables, reflecting the company's efficiency in using its assets.

Times Interest Earned

A financial ratio that measures a company's ability to cover its interest charges with its earnings before interest and taxes (EBIT).