Question

When the collection is held for public exhibition, education, or research in furtherance of public service rather than financial gain

Government-Wide Statement of Net Position Question:

How much should be classified as capital assets in Castle City's government-wide statement of net position at June 30?

a. $0
b. $6,000
c. $26,000
d. $20,000

Answer 1

The bank's net worth is calculated by subtracting total liabilities from total assets. With assets of $620 and liabilities at $400, the bank's net worth would be $220.

Step-by-step explanation:

Calculating Bank's Net Worth

When considering a bank's net worth, we look at the difference between its total assets and total liabilities. Here's a simplified T-account for the bank with the given figures:

Total Assets = Reserves + Government Bonds + Loans Made

Total Assets = $50 + $70 + $500 = $620

The only liability listed is deposits, which total $400.

Total Liabilities = Deposits = $400

To calculate the bank's net worth, we subtract the total liabilities from the total assets:

Net Worth = Total Assets - Total Liabilities

\

Net Worth = $620 - $400 = $220

Therefore, the bank's net worth, as of now, amounts to $220.