Ali is a businessman who started a business and in one stage due to the shortage of money he planned to discontinue his business. But as per his friend's advice he got money from the bank. Identify the role of bank in this situation: Foreign Exchange Lending money Lock box services Letter of credit

Ali is a businessman who started a business and in one stage due to the shortage of money he planned to discontinue his business. But as per his friend's advice he got money from the bank. Identify the role of bank in this situation: Foreign Exchange Lending money Lock box services Letter of credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: In a commercial bank, interest rate set for customers are the bank's assets. loans disbursed to…

A: Assets are owned by the bank whereas liabilities are to be paid by the bank. The detailed…

Q: Anna wires money from her bank account to her brother Garin in Australia for a fee of $35. The role…

A: Financial intermediaries perform key functions to promote and protect the economy. Example: Banks,…

Q: Commercial bank A lends £1,000 to Mr B, who uses it to buy a car from Mrs C, paying by bank transfer…

A: Explanation : As the money changed just changed from account of one bank to account of other bank ,…

Q: Bank reconciliation

A: Cheque issued not presented for payment = The cheque issued - Cheque presented to the bank

Q: What is the basic obligation of a depository bank to its depositor?

A: Depository banks are the banks which act as an agent of the investors and provide various service…

Q: Which of the following statements is false? A. Moral hazard is the lack of incentive to guard…

A: Analysis of the options: A: Moral hazard is the lack of incentive to guard against risk where one…

Q: Classify each of these transactions as an asset, a liability,or neither for each of the “players” in…

A: An asset is an economic resource that a person, company or nation possesses or regulates in…

Q: How will you adjust the above reconciliation item in bank reconciliation statement? a. Deduct OMR…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : A…

Q: 3. Suppose that banks aim to hold reserves equal to 8 per cent of deposits. Also suppose that…

A: Money multiplier shows how an initial money can grow into a higher value over time. Deposit…

Q: Properly record these transactions in order of occurrence, i.e. establish, reimburse, increase, in…

A: Petty Cash It is a small amount of cash which is kept by business units to cover minor expenses, Eg:…

Q: Identify, from the above scenario, the risks and control objectives relating to cash.…

A: In the present case it's evident that there are a lot of cash sales is happening and cash is been…

Q: Kofi Ansah, who maintains an account with KYZ bank ltd has presented a cheque he received from one…

A: i) Following are the parties in the given scenario:

Q: A credit card is which of the following? Is nothing more than a tool Is one part of a…

A: A credit card is a sort of payment card in which charges are made against a line of credit rather…

Q: - 5 The U.S. Chamber of Commerce provides a free monthly bank reconciliation template at…

A: The answer is as fallows

Q: 71. Which of the following is the usual activity classification of cash advances and loans made by…

A: Operating activities is the function directly retated to company's core business activities. Like…

Q: On 1st January 21 Mr Dawood started business in Oman. He opened a bank account with bank muscat. The…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: From page 4-4 of the VLN, what is the goal of a bank reconciliation? Group of answer choices A. To…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: Natalie decides that she cannot afford to hire John to do her accounting. One way that she can…

A: Bank Reconciliation Statement: Bank statement is prepared by the bank. The company maintains its own…

Q: Which of the following statements are true? Select the two correct answers. Responses A) credit…

A: E) You can never use a store credit card anywhere else. Store credit cards can only be used at the…

Q: Even before you use a new credit card, what information is the institution that issued your card…

A: The institution that issued your card is required by law to disclose the rate of interest and the…

Q: K Checking Accounts. Why do individuals use checking accounts? What is the disadvantage of having…

A: The question is asking about the purpose of checking accounts, the disadvantages of having funds in…

Q: Kay Breeze receives the March bank statement for success systems on April 11, 2005. The March 31…

A: Bank reconciliation statement is prepared to reconcile the balances as per bank and cash book.

Q: Khalid is working in a bank. He is confused with regard to ledgers and registers. From the below…

A: Loan is a source of financing provided by the bank to its customers. It can be short term or long…

Q: Your friend Binna has a money market mutual fund account, automatic deposit of her paycheck into…

A: The objective of the question is to understand the benefits of using multiple financial institutions…

Q: which of the followingtaxpayers has a deductible loss from identity thief? ashen he hasnt received…

A: Deductible losses refer to financial losses that can be subtracted or deducted from a person's or…

Q: K Checking Accounts. Why do individuals use checking accounts? What is the disadvantage of having…

A: Explanation is given below Explanation:People frequently utilise checking accounts for a variety of…

Q: 2. Bank deposits and other liabilities Use the following categorization table to identify…

A: Let's complete the table first categorising transaction and non-transaction:Explanationa) Savings…

Q: Statement I: A customer is any person, firm or company which has a bank account and for whom the…

A: Statement I: A customer is any person, firm or company which has a bank account and for whom the…

Q: X and Y holds joint account in Bank in which the mode of operation is jointly one fine day Y…

A: A joint account is a bank or brokerage account that is shared by two or more people. Joint account…

Q: In their attempt to capture Despereaux, Shawn Spencer and Bruton Gaster travel to Canada. There they…

A: Partner's Current Account: When the capital of the partners is fixed, a current account is created.…

Q: Direction: Answer the following questions. The main difference between other financial institutions…

A: A financial institution (FI) is a firm that deals with financial and monetary activities such…

Q: If you look, usually at the door as well as maybe the teller stands, when you go into your bank, you…

A: The question is based on regulation of banking insurance.

Q: "We have a contract with our partner bank that they pay us a monthly rebate that is calculated as a…

A: Cash Back Rewards- Cash back reward Incentive is used by the banks where the percentage of the…

Q: When banks allowed the business to withdraw money even when the account has no funds is known as…

A: Sometimes, banks provides a service to its clients to withdraw more than what they have in their…

Q: in his book Banking Law? a. A banker is one who in the additional course of his business, discounts…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: The following information was taken from a company's bank reconciliation at the end of the year:…

A: Cash Balance: The quantity of money on hand is referred to as the cash balance. This is calculated…

Q: Your friend Binna has a money market mutual fund account, automatic deposit of her paycheck into…

A: The objective of the question is to understand the benefits of diversifying financial services…

Q: One of your best friends has just started an accounting course at university. After his first lesson…

A: As per accounting rules, the assets have debit balance and liabilities have credit balance.

Question

100%

Ali is a businessman who started a business and in one stage due to the shortage of money he planned to
discontinue his business. But as per his friend's advice he got money from the bank. Identify the role of bank in
this situation:
Foreign Exchange
Lending money
Lock box services
Letter of credit
acen

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Hi, im having trouble with a bank reconciliation question. Additional information: (1) Cheque number 5904 is correctly drawn for RM2,080 to pay for computer equipment. (2) The NSF cheque shown in the statement was originally received from a customer, S. Nilson. The return has not yet been recorded by the company. (3) The credit memorandum is from the collection of RM1,400 note for Elisa Sdn. Bhd. by the bank. The bank deducted RM15 collection fee. This has not been recorded by the company too
Abdullah has applied for a loan to start his business. Bank has checked the profile of Abdullah. Bank is ready to give him a loan but they are asking for a collateral. Which type of loan, bank is advancing to Abdullah? a. Cash credit b. Secured loan c. Personal loan d. Unsecured loan
Select TWO true statements about money.a. Base money is equal to cash plus commercial bank reserves with the central bankb. Cash is a liability of the central bankc. If a commercial bank makes a loan and credits the borrower's current account, then base money increasesd. Commercial bank reserves with the central bank appear as a liability in their balance sheets
You are going on an overseas trip and you want to have checks that are easily converted into local currency. You should purchase Group of answer choices conditional checks. cashier's checks. guaranteed checks. traveler's checks. certified checks
Match up the following statements and answers. An answer may be used more than once. Whose liabilities are bank notes held by the general public? Choose... Whose assets are reserves with the central bank? Choose... For households a home mortgage is a Choose... for commercial banks a home mortgage is a Choose... for commercial banks a deposit held by the general public Choose... is a for a corporation a bank loan is a Choose... an example of a household's tangible assets is a Choose... if I borrow money using my house as collateral this is a v Choose... mortgage, an asset of a commercial bank the central bank liability house asset mortgage, a liability of a commercial bank commercial banks
Question Help please explain entries and calculations In seperate boxes for numbers 1-4 so i can learn to do it Thank You. 1.) Bank Reconciliation 2.) General Journal 3.) Bad Debt Calculations 4.) Notes Recievable Calculations In June, Bill commented to you that he could never figure out his bank statement, “it never matches the balance in my accounting records” he tells you. So you explain that a bank reconciliation is a tool used to balance the bank statement to the accounting books. He gives you his bank statement for June, 2014 (shown below). The general ledger shows a balance for the account cash of $14,319.00 on June 30, 2014 (detail transactions below). Bill’s business only has one checking account and no other cash accounts. Bill has begun to have problems collecting some of his credit accounts and is considering writing off a couple of customer account balances. He asks you how these bad debts should be recorded and has asked you to begin recording bad debt using the allowance…
Q31) Fahim is a businessman and wants to start a business in another country. What type of bank account should he open to get overdraft facility and cheque facility?
a. covered transaction b. possible suspicious transaction c. confidential transaction d. immoral transaction e. illegal transaction
Muneer is a customer of Bank Muscat who made use of the service provided by the bank called Lock box services. Which of the following statement is not suitable to this? This helps efficiently handle small volumes of payments Banks will get the funds into bank's account Helps efficiently handle large volume of payments Customers can mail nearby locations
4) Mr. Raid is new businessman in Muscat. When dealing with the local suppliers, he was not given credit facility as he was new. He requested his bank to help him. The bank provided him with -----
1. Rank each feature from most important to least important. (1 to 8) 1 being most important. RANK THESE ACCOUNT FEATURES: It’s Quick and Easy Convenient Access To Your Cash Help Tracking Your Finances Pay Day Is Right On Time Online and mobile banking make your life easier Your money is safe Save on other financial needs Help and support when you need it.
The problem below with Corrected Bank reconciliation