Which of the following statements is correct?
A) From the bank's point of view, loans to customers are assets of the bank.
B) From the bank's point of view, loans to customers are liabilities of the bank.
C) From the customer's point of view, loans to customers are assets of the customer.
D) From the customer's point of view, loans to customers are liabilities of the customer.
E) a and b only
F) a and d only

Question

Which of the following statements is correct? 
A) From the bank's point of view, loans to customers are assets of the bank.
B) From the bank's point of view, loans to customers are liabilities of the bank.
C) From the customer's point of view, loans to customers are assets of the customer.
D) From the customer's point of view, loans to customers are liabilities of the customer.
E) a and b only
F) a and d only

Quizplus · Accepted Answer

From the bank's point of view, loans to customers are assets because they represent money owed to the bank. From the customer's point of view, loans are liabilities because they represent money the customer owes.

Which of the Following Statements Is Correct