The value of a bank's assets is than its liabilities, the bank is said to be <u>solvent</u>
<h3>What is assets?</h3>
Any resource that a company, an organization, or an economic body owns or controls is considered an asset. It encompasses everything that has the potential to generate gains in the economy. When turned into money, assets indicate the worth of ownership.
<h3>What do you mean by solvent in accounting?</h3>
A company's capacity to fulfill its short-term and long-term financial commitments is known as its solvency. One indicator of a company's financial health is its level of solvency, which reveals whether it will be able to continue running its business into the near future. Ratio analysis is a tool investors can use to assess a company's solvency.
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Answer:
Notes Receivable for $1,000. Cash for $1,010. Interest Revenue for $5. Interest Receivable for $5.
Explanation:
The journal entry to record the receipt of the payment is shown below:
Cash Dr $1,010
To Interest receivable $5 ($1,000 ×6% × 30 days ÷ 360 days)
To Interest revenue $5
To Note receivable $1,000
(being the receipts is recorded)
here cash is debited as it increased the assets and credited the interest receivable, interest revenue and note receivable as it increased the assets and revenue accounts
Answer:
agent method of entry
Explanation:
Agent method of entry will demonstrate lower fixed costs associated.
Answer:
the answer is D terms and conditions set forth in a lending agreement to reduce the probability of non-payment
Explanation:
covenants help lenders detect deteriorating loan quality.
The price of elasticity of the product maybe considered inelastic since there is little to no responsiveness to the change in price of the product. A factor or reason can be that it is a necessity so persons still have to buy the product no matter the change in price.
