The Most Liquid Form of Assets on a Bank's Balance

question 52

Multiple Choice

The most liquid form of assets on a bank's balance sheet are:

• A)checking deposits.
• B)reserves.
• C)loans.
• D)federal funds.

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Definitions:

Recognizing Revenue

The process of recording revenue in the accounting records once it is earned and realizable, in accordance with relevant accounting standards.

Performance Obligation

A commitment in a contract to transfer a good or service to a customer, for which a company must satisfy to recognize revenue.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) used globally to prepare public company financial statements.