The Two Most Important Categories of Assets on the Bank's

question 117

Multiple Choice

The two most important categories of assets on the Bank's balance sheet are ________ and ________ because they earn interest.

• A) advances to banks; coins
• B) securities; advances to banks
• C) gold; coins
• D) cash items in the process of collection; SDR certificate accounts

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Definitions:

Income Tax Expense

Income tax expense represents the amount of money a company or individual owes to the government based on their taxable income.

Deferred Tax Liability

A tax obligation that a company owes in the future due to temporary differences between its taxable income and its accounting earnings.

Deferred Tax Asset

An accounting item on the balance sheet that represents a future tax payment obligation to the IRS, which results in reduced taxes payable in future periods.

Income Tax Liability

The amount of tax that an individual or corporation owes to the government based on their income earnings for the fiscal year.