Which of the following cash flows may be reported on a net basis by a financial institution?
I. Cash payments and receipts for the acceptance and repayment of deposits with a fixed maturity date.
II. Cash receipts and payments for the acceptance and repayment of deposits with no fixed maturity date.
III. The placement of deposits with and withdrawal of deposits from other financial institutions.
IV. Cash advances and loans made to customers and the repayment of those advances and loans.
A) I, II and IV.
B) II, III and IV.
C) I, III and IV.
D) I, II and III.

Question

Quizplus · Accepted Answer

Cash flows for the acceptance and repayment of deposits with a fixed maturity date (I) and for cash advances and loans made to customers and the repayment of those advances and loans (IV) may be reported on a net basis by a financial institution. The placement of deposits with and withdrawal of deposits from other financial institutions (III) may also be reported on a net basis. However, cash receipts and payments for the acceptance and repayment of deposits with no fixed maturity date (II) cannot be reported on a net basis because the timing of the cash flows is uncertain.

Which of the Following Cash Flows May Be Reported on a Net