Scenario: Amateur Bank is just starting out and has had the following transactions:
• Amateur Bank takes out a $3,000 loan from Pro Bank.
• Amateur bank has $2,500 invested in building and operations.
• Suzie deposits $1,200.
• Joe deposits $750.
• Robbie takes out a loan for $900.
• Jackie takes out a business loan for $625.
• Amateur Bank invests $1,000 in GoPro.
-Refer to the scenario above.How much does Amateur Bank have in total assets?

Question

Quizplus · Accepted Answer

Total assets of Amateur Bank include the loan it took ($3,000), investments in building and operations ($2,500), deposits made by Suzie ($1,200) and Joe ($750), and the loans given to Robbie ($900) and Jackie ($625). The investment in GoPro ($1,000) is also part of the assets. Adding these together: $3,000 + $2,500 + $1,200 + $750 + $900 + $625 + $1,000 = $10,975. However, the initial loan from Pro Bank should not be subtracted from assets, as it is a liability, not a deduction from assets. Therefore, the total assets are indeed $10,975, indicating a mistake in the provided choices. Given the options, none directly match the correct calculation, suggesting a potential misunderstanding in the asset calculation process.

Scenario: Amateur Bank Is Just Starting Out and Has Had