Which one of the following statements is true? Question 12Answer a. Fee income is the main source of revenue for financial institutions. b. Fee income is the revenue taken in by financial institutions from account-related charges to customers c. Interest income is non-taxable d. Interest expenses is the same as fee income.

Which one of the following statements is true? Question 12Answer a. Fee income is the main source of revenue for financial institutions. b. Fee income is the revenue taken in by financial institutions from account-related charges to customers c. Interest income is non-taxable d. Interest expenses is the same as fee income.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 13GI

See similar textbooks

Similar questions

The accounting treatment of a transfer fees by a bank is: a. An interest income b. An interest expenses c. A non-interest income d. A non-interest expens
16 - Which of the following is the account where the increases are recorded to the receivable side and the decreases to the debit side?A) Asset AccountsB) Passive AccountsC) Accounts ReceivableD) Expense AccountsE) Passive regulating accounts
Incorporate the following data into Bank X's revenue statement. Each item should be labelled and placed in the proper category and order. Commission ,exchange and brokerage received.Income on InvestmentsInterest paid on depositsPayments to and provisions for employeesInterest paid on BBI/ interbank borrowingsInterest/discount received on advances/billsIncome from leasing/hire purchaseInterest paid-othersProfit on exchange transactionsRent, taxes, lightingInsuranceLaw chargesProfit on sale of land, buildings and other assetsMiscellaneous incomeAuditor’s fees and expensesPrinting and stationaryProfit on sale of investmentsDepreciation on bank’s propertyIncome by way of dividends and subsidiariesAdvertisement and PublicityInterest earned – othersDirector’s fees, allowances and expensesMiscellaneous incomeRepairs and maintenanceOther expensesPostage, telegram, telephone and other communication expensesInterest received on balances with RBI and interbank funds.
The receivable that is usually evidenced by a formal instrument of credit is a(n) Select one: a. trade receivable. b. accounts receivable. C. note receivable. d. income tax receivable.
Hi why is the net income on the credit side and not debit?
A- calculate the loan to members B-calculate the Loan from members C- calculate the interest income
1) What is the difference between Interest Receivables and Account Receivables and Interest Income?2) What statements does each appear on and are al DR accounts?
14 - Which of the following transactions is credited?A) WHEN CHARGEDB) PURCHASE OF COMMERCIAL GOODSC) CURRENT REVENUED) IN COLLECTIONE) WHEN THE BANK ACCOUNT INCREASES
When a bank grants a consumer loan to someone, it leads to: a. an indirect flow of funds O b. a rise in the bank's liabilities Oc a direct flow of funds Od. a rise in the bank's interest expense
18. If a company employs the net method of recording accounts receivable from customers, then sales discounts taken should be reported as O a. a deduction from sales in the income statement. O b. an item of "other income and expense" in the income statement. O c. a deduction from accounts receivable in determining the net realizable value of accounts receivable. O d. should not be used.
Match each of the following terms with its definition. Terms Definitions _____ 1. Accounts receivable a. Reductions in amount owed by customers because of deficiency in products or services. _____ 2. Credit sales b. Formal credit arrangements evidenced by a written debt instrument. _____ 3. Sales allowances c. Amount of cash owed to the company by customers from the sale of products or services on account. _____ 4. Allowance method d. Recording bad debt expense at the time the account is known to be uncollectible. _____ 5. Notes receivable e. Sales on account to customers. _____ 6. Direct write-off method f. Reductions in amount owed by customers if payment on account is made within a specified period of time. _____ 7. Net revenues g. Total revenues less returns, allowances, and discounts. _____ 8. Sales discounts h. Recording an adjustment at the end of each period for the estimate of future uncollectible accounts. _____ 9. Aging method i. Estimated percentage of…
Explain how the bank’s decisions to increase loan loss provision will affect the above balance sheet and income statement.