Asked by
Banana Yummy
on Nov 11, 2024
Verified
On a bank's balance sheet,the value of its assets must equal:
A) net worth only.
B) liabilities only.
C) owner's equity.
D) the value of its liabilities plus net worth.
E) its revenues minus costs.
Balance Sheet
A financial statement at a given point in time that shows assets on one side and liabilities and net worth on the other side; because assets must equal liabilities plus net worth, the two sides of the statement must be in balance.
Net Worth
The total assets minus total external liabilities of an individual or a company, indicating their overall financial position.
Liabilities
Financial obligations or debts owed by a company or individual to others, which must be settled over time through the transfer of economic benefits.
- Gain knowledge of the core elements of bank functions, focusing on asset, liability, and equity interconnections.
Verified Answer
BK
Learning Objectives
- Gain knowledge of the core elements of bank functions, focusing on asset, liability, and equity interconnections.