A company maintains the asset account, Cash in Bank, on its books, while the bank maintains a reciprocal account that is
A)a contra asset account.
B)a liability account.
C)also an asset account.
D)a stockholders' equity account.

Question

Quizplus · Accepted Answer

The bank maintains a liability account because the money deposited by the company is a liability for the bank, as it owes this amount to the company.

A Company Maintains the Asset Account, Cash in Bank, on Its