Multiple Choice
Enforcing referential integrity in the context of accounting information systems assures that:
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7. Receivables and Investments
Types of Receivables
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If a person makes a deposit of $10,000 or more into a bank account, the bank must notify which of the following agencies?
A
Securities and Exchange Commission (SEC)
B
Financial Accounting Standards Board (FASB)
C
Federal Reserve Bank
D
Internal Revenue Service (IRS)
Verified step by step guidance1
Understand the context of the problem: The question is asking about regulatory requirements for large deposits in a bank account, specifically $10,000 or more.
Recognize that this is related to financial reporting and compliance, which falls under the jurisdiction of government agencies responsible for monitoring financial transactions.
Eliminate incorrect options: The Securities and Exchange Commission (SEC) primarily oversees securities markets and public companies, not individual bank deposits. The Financial Accounting Standards Board (FASB) sets accounting standards but does not enforce reporting of bank deposits. The Federal Reserve Bank manages monetary policy and banking systems but does not handle individual deposit reporting.
Identify the correct agency: The Internal Revenue Service (IRS) is responsible for monitoring large financial transactions to prevent money laundering, tax evasion, and other illegal activities. Banks are required to file a Currency Transaction Report (CTR) with the IRS for deposits of $10,000 or more.
Conclude that the correct answer is the IRS, as it aligns with the regulatory requirements for reporting large deposits.
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