If You Have a Checking Account at First National Bank

question 23

Multiple Choice

If you have a checking account at First National Bank, the account is

• A)an asset to both you and First National.
• B)a liability to both you and First National.
• C)an asset to First National and a liability to you.
• D)an asset to you and a liability to First National.

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Definitions:

Money

Any item that is generally acceptable to sellers in exchange for goods and services.

Present Value

A calculation of today's value of money to be received in the future or ongoing cash flows, based on a given rate of return.

Rent Payment

Monetary compensation paid by a lessee to a lessor for the use of a particular property, piece of equipment, or facility.