Accountancy, asked by asrithamantri4383, 11 months ago

What is the difference between balance sheet of a company and balance sheet of a bank?

Answers

Answered by anoushkanarang2222
0

Answer:

The first few lines of a bank balance sheet are similar to a company balance sheet, listing cash, securities and interest-bearing deposits. However, one of the most significant assets on a bank balance sheet is the line item for net loans -- money the bank loaned to its customers. Among the liabilities on a bank's balance sheet are interest-bearing and non-interest-bearing deposits, short-term debt and long-term debt.

A company's balance sheet starts with its cash and cash equivalents, marketable securities and accounts receivable. Depending on the company's business, it may also list as assets items such as raw materials, finished products and inventory. A company also lists its fixed assets such as manufacturing factories, fixtures and equipment. Other assets may include intangibles such as intellectual property: patents, trademarks and copyrights. After listing assets, a company's balance sheet lists its current liabilities -- those that are due within the next 12 months -- and long-term debt, lease obligations, deferred income taxes and other non-current liabilities.

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