Asked by
Alexis Liles
on Nov 02, 2024
Verified
Which of the following cash flows may be reported on a net basis by a financial institution?
I. Cash payments and receipts for the acceptance and repayment of deposits with a fixed maturity date.
II. Cash receipts and payments for the acceptance and repayment of deposits with no fixed maturity date.
III. The placement of deposits with and withdrawal of deposits from other financial institutions.
IV. Cash advances and loans made to customers and the repayment of those advances and loans.
A) I, II and IV.
B) II, III and IV.
C) I, III and IV.
D) I, II and III.
Fixed Maturity Date
A specific date on which the principal (or face value) of a financial instrument is due to be repaid.
Financial Institution
A business that provides financial services such as loans, deposits, payments, and investment products to its customers.
Advances and Loans
Financial assistance provided by a lender to a borrower, where the amount is expected to be repaid with or without interest.
- Gain insight into the impact of asset and liability fluctuations on cash flow.
Verified Answer
JG
Learning Objectives
- Gain insight into the impact of asset and liability fluctuations on cash flow.