I Have a Checking Account at the Local Bank,and My

question 42

Multiple Choice

I have a checking account at the local bank,and my sister has a car loan at the same bank.How does each of these appear on the bank's balance sheet?

• A) The checking account is a liability, and the car loan is an asset.
• B) The checking account is an asset, and the car loan is a liability.
• C) Both the checking account and the car loan are assets.
• D) Both the checking account and the car loan are liabilities.
• E) Both the checking account and the car loan are net worth.

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Definitions:

Personal Property

Movable assets owned by individuals or entities, in contrast to real property like land or buildings.

Consumer Leases

Agreements where a consumer rents or leases goods or services, typically for personal, family, or household purposes.

Article 2A

A section of the Uniform Commercial Code that governs the leasing of personal property, establishing legal standards and protections.

Battle Of The Forms

A legal conflict that arises when two parties conducting business each provide their own sales contracts, which contain conflicting terms.