When banks prepare their balance sheets. They show the money lent in ?
Correct answer: B. Assets
- A. Liability
- B. Assets
- C. Both assets and liabilities
- D. None
Explanation
A bank records money lent to customers as an asset because it represents a claim from which the bank expects repayment and interest. Deposits and other amounts owed by the bank are recorded as liabilities.
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Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
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