Answer:
The correct answer is letter "B": large numbers of depositors withdrawing their deposits within a short period of time.
Explanation:
A bank run is a situation in which account holders massively withdraw their funds under the fear the financial institution will lose its liquidity. The situation gets to a point in which the bank is at risk of sensing all its reserves and fail to provide all its clients the money they deposited.
In the U.S. financial institutions with deposits between $16 and $122.3 million must have a minimum reserve of 3%. When the deposits exceed $122.3 million the minimum reserve increases to 10%. The rest of the money is reinvested by banks.
Answer:
$440,140
Explanation:
According to the accounting principle, the inventory should be valued at lower of cost or market value. The calculation is shown below:
Cost Market Lower value
Small $68,650 $56,490 $56,490
Medium $283,710 $237,140 $237,140
Large $146,510 $177,300 $146,510
Total $440,140
Hence, the ending inventory would be valued at $440,140
Answer:
The land should be reported in the financial statement at $40,800
Explanation:
At the time the fixed asset is being recorded, it should be recorded at the purchase cost or historical price.
Since the land was purchased at $40,800 according to the question, also it is assessed for tax purpose at $27,900 and was valued at $48,900 by other appraisers including an offer of cash payment of $44,200.
But at the time of recording, the balance sheet would show at the price of $40,800
Explanation:
Managerial accountants in integration with managers play a relevant role in the organizational decision making process.
This is because managerial accountants provide decision support reports at each stage of the process, so that risks are minimized and structured processes optimized.
Managerial accounting provides possibilities for planning, controlling and valuing. The tools help with the ability to measure prior periods to optimize projected performance and financial impacts added to decisions. It is also possible to set standards that assist in investigating errors and failures at some stage of the process and solving problems.
