Discount Allowed Is A

question 18

Multiple Choice

Discount allowed is a:

• A) cash item that is included as an outflow in the statement of cash flows.
• B) cash item that is included as an inflow in the statement of cash flows.
• C) cash item that is adjusted in a note attached to the statement of cash flows.
• D) non-cash item that is deducted from accrual based revenue and thus not included in the statement of cash flows.

---

Definitions:

Required Reserve Ratio

The fraction of deposits that banks are required to keep on hand as reserves, determined by central banks to influence money supply and lending.

U.S. Treasury Securities

Debt instruments issued by the United States Department of the Treasury to finance government spending as an alternative to taxation.

Money Supply Curve

A representation showing the relationship between the money supply and the interest rate, inverting the money demand curve's concept.

Planned Investment

Investments that businesses intend to make in the future, often based on projected economic conditions or expected returns.