A financial intermediary specializes in knowing about people who apply for loans. The intermediary knows how to evaluate credit histories and the probabilities that borrowers will repay. These facts are examples of which of the following functions of financial intermediaries?
A. Gathering information
B. Helping savers diversify
C. Pooling funds
D. Taking short-term deposits in order to make long-term loans
Answer: A
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The factory supplies account is adjusted for supplies used during the year by
a. debiting Factory Supplies and crediting Factory Supplies Expense; b. debiting Factory Supplies Expense and crediting Factory Supplies; c. debiting Office Supplies Expense and crediting Factory Supplies Payable; d. debiting Factory Supplies and crediting Factory Overhead; e. none of these
Assume that the budgeted factory overhead cost for the cutting department in Trex Company amounts to $50,000, and the estimated direct labor cost is expected to be $200,000 . The predetermined overhead rate would be 25% of direct labor dollars ($50,000/$200,000). During the first month of operations, Job 211 incurred $ 1,600 for direct materials and $ 2,400 for direct labor. The job is completed
by the end of the month. Using the predetermined rate to estimate factory overhead, the total job cost is: a. $500 b. $4,600 c. $3,500 d. $2,000
Losses of productivity and customer goodwill are examples of tangible costs
Indicate whether the statement is true or false
Murphy's Repair has the following outstanding account receivables at the end of the month
The monthly late fee is 1.50% of the outstanding balance at the end of each billing month following the sale (February sales receive a late fee in April if not paid by March 31). Determine the total late fees due for the following. Invoice # Bill Date Customer Original $ Late Fees $ Current Date 6872 6/15/2008 RLO $321.00 9/30/2008 7100 6/25/2008 JBL $417.00 9/30/2008 7469 7/12/2008 DLL $585.00 9/30/2008 A) $19.85 B) $31.08 C) $48.17 D) $0.00