nerdexam
IIA

IIA-CFSA · Question #74

If more funds than expected are needed to cover loans losses in a given period, the reserve must be increased and the difference is charged to:

The correct answer is C. Operating expenses. See the full explanation below for the reasoning.

Question

If more funds than expected are needed to cover loans losses in a given period, the reserve must be increased and the difference is charged to:

Options

  • AAdministration expenses
  • BPrepaid assets
  • COperating expenses
  • DLoan expenses

How the community answered

(34 responses)
  • A
    12% (4)
  • B
    3% (1)
  • C
    82% (28)
  • D
    3% (1)

Community Discussion

No community discussion yet for this question.

Full IIA-CFSA Practice