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Assets of $170 billion

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Q: A bank that has liabilities of 150 billion and a net worth of 20 billion must have?
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What is the reason of why assets must equal to liabilities and capital?

in case things go belly up you need to have a means of paying off the liabilities


If total liabilities decreased by 4000 then?

assets must have decreased by 7000


If total liabilities increased by 5000 then?

stockholder's equity must have increased by 5,000


Assets must always equal the sum of liabilities and owners equity?

A=L+Ealways


Is a liability account a debit or a credit?

Remember the basic accounting equations Assets = Liabilities + Owners Equity (Stockholders Equity) Assets increase with a debit Liabilities as well as Equity increase with a credit Liabilities have a credit balance (meaning you must credit the account to "increase" it and debit the account to "decrease" it) this makes liabilities a credit.


How do you calculate owner equity when assets increase by 150000 and liabilities increased by 90000?

In financial accounting, Assets always equal the sum of your liabilities and equity. Therefore, if your assets increase by $150k and liabilities increased by $90k, your owners equity must have increased by $60k.


Why are the assets of a business equal to the capital plus liabilities?

Basic accounting equation = assets = liabilities + capitalit is so because capital as well as other liabilities have to be paid by the business at the dissolution time of business and at dissolution time or liquidation time business must have assets equal to liabilities plus owner's equity to pay all liabilities of business without going insolvent otherwise business will become insolvant and somebody will not get all it's liabilities completely cleared at the time of liquidation of business.


What is current borrowing?

debt that must be repaid within one year (because it is included in Current Liabilities)


What should you do if your boss asked that you don't make the adjusting entry to take the current liabilities from long term liabilities?

I have to say that this question doesn't seem plausible. The reason being,Current Liabilities are liabilities that are short-termed, meaning they will be paid in a very short time. Usually one year or less.Long-Term Liabilities are liabilities that are much longer and will be paid out during a long period of time, more than a year.There should be no current liabilities in long-term liabilities unless an error was made during the accounting process and an current liability was recorded as an long-term, in which case, an adjusting entry must be made to show this error.Other than an accounting error, there are not current liabilities in long-term to "take out".


If the liabilities owed by a by a business total 500000 then the assets also total 500000 T or F?

Yes it is true that assets side total must be equal to liabilities side and in this way above statement is correct.


Which is bigger one billion or one million?

A billion is bigger (or greater) than a million.


What is the meaning of the Advising Bank?

The bank who must provide the documents to the issuing bank