The Balance Sheet for First Union Bank are shown below: Balance Sheet (in millions) Assets Cash and due from banks Investment securities Liabilities and Equity $380 Demand deposits 1,650 Small time deposits

Q: What are the two categories of liabilities reported on the balance sheet? Provide examples of each.

A:

Q: When should debt security be classified as held-to-maturity?

A: Debt: A debt security should be classified as held to maturity only if the company has both the…

Q: How can we use special financial functions to determine the total interest?

A: Financial functions have made financial calculations easy using excel, they make you calculate the…

Q: What does the formula developed for calculating compound interest express?

A: Answer: Compound interest is nothing but interest earned on interest. In case of simple interest…

Q: The payment for the use of borrowed money is called: loan maturity value interest principal

A: Borrowed money is the loan taken, which is to be repaid within the terms of the loan contract.

Q: preparing a balance sheet, interest receivable goes under what heading?

A: Balance sheet:It is one of financial statement which shows the assets, liabilities and shareholders’…

Q: Difference between current and long term liabilities?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: what types of investments generate interest income and how is interest income reported?

A: When a person makes an investment then that person will earn a return or an income on that…

Q: Under which head is the ‘Debenture Redemption Reserve’ shown in the Balance Sheet?

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

Q: Define Interest Capitalization.

A: Interest Expense: The cost of debt which is incurred during a particular accounting period is called…

Q: How are held-to-maturity investments reported on the financial statements?

A:

Q: Define CDO, collateralized debt obligation

A: The question is based on the structure and definition of Collateralized debt obligation (CDO), the…

Q: Define common equity (net worth)

A: The claims of owners on a company’s resources, after the liabilities are paid off, are referred to…

Q: Define Short-Term Interest-Bearing Notes.

A: Short-term interest-bearing note:   The short-term interest-bearing note is a note on which interest…

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.