commercial bank balance sheet

Question 1

what is a balance sheet

Answer 1

-record of all assets (turn to cash through bank), liabilities (anything owed) and capital (shareholder equity) at any given point in time
-must balance where assets=liabilities + capital

Question 2

types of assets

Answer 2

-cash, reserves of bone, money at call at short notice, short/long term investments, advances, fixed assets

Question 3

types of liabilities

Answer 3

-deposits, borrowing, shareholder finds retain profits (capital)