A company maintains the asset account, Cash in Bank, on its books, while the bank maintains a reciprocal account which 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 reciprocal account maintained by the bank is a liability account, as it represents the bank's obligation to pay the funds held in the company's Cash in Bank account.

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