Which of the Following Involves Financial Intermediation

question 49

Multiple Choice

Which of the following involves financial intermediation?

• A)a bank makes a loan
• B)a household buys stock issued by a corporation
• C)a foreign government purchases U.S.government bonds
• D)All of the above are correct.

Understand the accounting entries related to receiving an interest-bearing note.

Identify when interest is usually associated with different types of receivables.

Prepare adjusting entries for interest on notes receivable.

Calculate average collection period and understand its significance.

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Definitions:

HIPPCO

An acronym for Habitat Destruction, Invasive Species, Population, Pollution, Climate Change, and Overfishing, enumerating the primary factors contributing to biodiversity loss.

Premature Extinction

The early disappearance of a species from Earth, often caused by human activities.

Acronym

An abbreviation formed from the initial letters of other words and pronounced as a word.

Ecosystem

A community of living organisms and their physical environment interacting as an integrated system.