Examlex

Solved

A Bank's Balance Sheet Can Show a Negative Net Worth

question 198

True/False

A bank's balance sheet can show a negative net worth and yet its income statement can show a profit for the year.


Definitions:

Antilapse Clause

A provision in a will that allows the gifts to substitute beneficiaries if the original beneficiary is deceased.

Grace Period

A grace period is a set length of time after a due date during which a payment can be made without penalty.

Commercial Insurance

Insurance that covers some type of business risk.

Business Risk

The possibility that a company will have lower than anticipated profits or experience a loss rather than making a profit.

Related Questions