Which of the Following Will Be Classified as a Liability

question 153

Multiple Choice

Which of the following will be classified as a liability on the balance sheet of a commercial bank?

• A) vault cash
• B) loans extended to customers
• C) checking deposits of customers
• D) deposits held at a Federal Reserve bank

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Definitions:

Accounting Record

Documentation and books kept for the purpose of recording all financial transactions of an entity.

Natural Disasters

Natural disasters are severe, sudden events caused by environmental factors that can cause significant damage, loss, or changes to life, property, and the economy, including hurricanes, earthquakes, and floods.

Safeguard Assets

Implemented measures and policies to protect a company’s assets from theft, damage, or misuse.

Internal Controls

A set of procedures and policies designed to ensure the accuracy and completeness of financial reporting, safeguard assets, and ensure compliance with laws and regulations.