The Local Bank Has Decided to Double the Number of Its

question 3

Multiple Choice

The local bank has decided to double the number of its local branch offices.How will this affect the bank's balance sheet?

• A) Total assets will increase.
• B) Total liabilities will increase.
• C) Total liabilities will decrease.
• D) Total assets will decrease.
• E) Total assets and total liabilities will both remain unchanged.

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Definitions:

Net Income

The residual financial benefit a company experiences after expenses and taxes are subtracted from its income.

Fiscal Year

A 12-month period used for accounting and financial reporting purposes, which may or may not align with the calendar year.

Rent in Advance

Payment made for a rental property or equipment before the period it covers, usually as a security measure or requirement by the landlord.

Tenant Paid

A term indicating that a tenant is responsible for certain payments, such as utilities or maintenance fees, in addition to rent.