You Know the Following Information About the Webb State Bank

question 9

Multiple Choice

You know the following information about the Webb State Bank: $\begin{array} { l r } \text { Accumulated depreciation } & \$ 40 \\\text { Net loans } & 600 \\\text { Fed Funds purchased and repurchase agreements } & 200 \\\text { Cash and due from banks } & 50 \\\text { Trading account securities } & 40 \\\text { Miscellaneous assets } & 100 \\\text { Deposits } & 500 \\\text { Undivided profits } & 140 \\\text { Gross premises } & 90 \\\text { Surplus } & 40 \\\text { Subordinated debt } & 100 \\\text { Investment securities } & 160 \\\text { Common stock par } & 20 \\\text { Gross loans } & 700\end{array}$
Given this information,what is the value of this firm's total equity?

• A)$1,000
• B)$300
• C)$800
• D)$200
• E)$500

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Definitions:

Match of Expenses

The accounting principle of recognizing expenses in the same period as the revenues they helped to generate.

Revising Depreciation Estimates

Adjusting the period or method used for depreciating a fixed asset due to changes in its expected useful life or salvage value.

Past Periods

Previous time frames or accounting periods, which have already concluded and for which financial statements are typically finalized.

Accelerated Depreciation Method

A depreciation method that provides for a higher depreciation amount in the first year of the asset’s use, followed by a gradually declining amount of depreciation.