Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

Which of the following is considered a liability to a bank?

Loans made to customers

Customer deposits

Bank-owned buildings

Investment securities held by the bank

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Verified step by step guidance

Step 1: Understand the concept of liabilities in financial accounting. A liability is an obligation that a company or entity owes to others, typically involving the future transfer of assets, services, or cash.

Step 2: Analyze the options provided in the problem. Determine which items represent obligations or debts owed by the bank to external parties.

Step 3: Evaluate 'Loans made to customers.' These are assets for the bank because they represent amounts owed to the bank by customers, not liabilities.

Step 4: Evaluate 'Customer deposits.' These are liabilities because the bank owes the deposited money back to the customers and may need to return it upon request.

Step 5: Evaluate 'Bank-owned buildings' and 'Investment securities held by the bank.' Both are assets because they represent resources owned by the bank, not obligations owed to others.