Question

Eastman Kodak Company reports land on its balance sheet at the amount paid to acquire it, even though the estimated fair value is greater.-------------------

Answer 1

The money listed under assets on a bank balance sheet may not actually be in the bank due to loans, investments, off-balance sheet items, and frozen or blocked funds.

Step-by-step explanation:

On a bank balance sheet, the money listed under assets may not actually be in the bank due to several reasons:

1. Loans: A portion of the assets may be in the form of loans given by the bank to individuals or businesses. These loans may not be immediately recoverable.
2. Investments: The bank may have invested some of its assets in securities or other financial instruments which may not be easily liquidated.
3. Off-Balance Sheet Items: Some assets, such as contingent liabilities or derivatives, may not be listed on the balance sheet but can still affect the bank's financial position.
4. Frozen or Blocked Funds: In certain situations, such as legal disputes or regulatory actions, a bank's assets may be frozen or blocked, temporarily restricting its ability to access those funds.