Which of the Following Is Considered a Liability to a Bank

question 63

Multiple Choice

Which of the following is considered a liability to a bank?

• A) the bank's loans
• B) customer deposits
• C) the bank's buildings and equipment
• D) reserves

Understand the accounting treatments for trading securities, including fair value adjustments and the recognition of unrealized gains and losses.

Comprehend the criteria for using the equity method for accounting for investments and the implications of ownership percentages.

Recognize the differences between accounting treatments for trading, available-for-sale, and equity securities.

Grasp the concept and accounting treatment of goodwill in business combinations.

---

Definitions:

Decision-making Approach

A systematic process for making choices among various alternatives, often involving steps such as identifying a problem, generating options, and selecting a course of action.

Fairness

The quality of treating people equally or in a way that is right and just.

Justice

The concept of fair treatment and equitable distribution of benefits and burdens within society or an organization.

Greater Good

A philosophical concept that refers to the outcome or decision that benefits the most people or society at large, often used in ethical discussions.