Table 13-1 -In Table 13-1,suppose That $10,000 in New Deposits Is Received

question 3

Multiple Choice

Table 13-1

-In Table 13-1,suppose that $10,000 in new deposits is received by the bank.If there were no other changes in the balance sheet,then the bank would be in a position to make new loans in the amount of

• A)$13,000.
• B)$15,000.
• C)$10,000.
• D)$8,000.

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Definitions:

Net Cash

The amount of cash available after accounting for cash inflows and outflows, providing a clear picture of an entity's liquidity.

Investing Activities

Transactions and events that involve the acquisition or disposal of long-term assets and investments by a company.

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of a company.

Direct Method

A cash flow statement preparation approach that lists major classes of gross cash receipts and payments.