In Table 10.2,Column A is bank __________ and Column B is bank __________.
A)assets;liabilities
B)liabilities;assets
C)on-balance sheet activity;off-balance sheet activity
D)"shadow" activity;"open air" activity
E)not enough information

Question

Quizplus · Accepted Answer

Column A is typically used for recording bank assets such as cash, loans, investments, and other physical or tangible assets. On the other hand, Column B is used for recording bank liabilities such as deposits, borrowings, bonds, and other obligations. Hence, the best choice is A, that is assets and liabilities, which matches with the typical accounting practices of banks.