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

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Definitions:

Accounts Receivable Turnover

A financial ratio indicating how quickly a company collects on outstanding accounts receivable, calculated by dividing total net sales by the average accounts receivable during a period.

Cash Cycle

The amount of time it takes for a company to convert its investments in inventory back into cash through sales.

Inventory Turnover Rate

A metric that shows how many times a company's inventory is sold and replaced over a certain period of time.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.