Which of the Following Correctly Portrays a Bank's Balance Sheet

question 37

Multiple Choice

Which of the following correctly portrays a bank's balance sheet?

• A) Total Bank Liabilities = Total Bank Capital + Total Bank Assets
• B) Total Bank Assets = Total Bank Capital - Total Bank Liabilities
• C) Total Bank Assets = Total Bank Liabilities - Total Bank Capital
• D) Total Bank Assets = Total Bank Liabilities + Total Bank Capital

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Definitions:

Journalized

The process of recording transactions in a journal before they are posted to the general ledger in accounting.

Income Summary Account

A temporary account used in the closing process that aggregates all income and expense accounts to determine net income or loss for a period.

Permanent Account

An account in the general ledger that carries its ending balance over to the next accounting period, such as assets, liabilities, and equity accounts.

Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company's financial condition at a specific time, summarizing its assets, liabilities, and shareholders' equity.