Question

1. The items under 'Liabilities' in the 1 point
balance sheet of a Bank are shown
in the following order. *
O
A. Capital, Reserves and Surplus,
Borrowings, Deposits
O
B. Deposits, Capital, Reserves and
Surplus, Borrowings
O
C. Capital, Reserves and Surplus,
Deposits, Borrowings
O
D. Borrowings, Deposits, Capital,
Reserves and Surplus​

Answer 1

Answer:

Option c is in the correct order

Answer 2

The 'Liabilities' in the balance sheet of a Bank are shown in the following order C. Capital, Reserves and Surplus, Deposits, Borrowings.

They are listed on the balance sheet based on the shortest term to longest-term i.e., order of how soon they must be paid.

• Capital specifically refers to equity on the liability side of the balance sheet. they are the capital requirements amount of equity a financial institution must have about its assets.
• Reserves are the funds designated for specific purposes which company intends in the future. The surplus is where the profits of company asides.
• For a bank, deposits are a liability whereas loans are assets.
• Borrowings can be classified as current liabilities, it is a long-term debt of a business entity.