Final answer:
The adjustment which will increase assets is recording rent revenue owed but not paid, increasing 'accounts receivable'. Money on a bank's balance sheet may not be present as cash since it includes various forms of assets like loans. The value of loans in the secondary market fluctuates based on payment history, profit declarations by the borrower, and prevailing interest rates.
Step-by-step explanation:
The question you've asked is related to accounting adjustments and their impact on financial statements. When considering which one of the following adjustments will increase assets, the correct option is d. Rent revenue is recorded for amounts owed by a tenant but not yet paid. Recording this rent revenue increases an asset known as 'accounts receivable,' reflecting the tenant's obligation to pay the rent in the future.
Concerning why money listed under assets on a bank balance sheet may not actually be present in the bank: banks hold assets in various forms, not just physical cash. These assets include loans to customers, investments in government bonds, and money held in reserves at the Federal Reserve. While these are all considered assets, they are not necessarily available as physical cash at the bank.
Regarding the value of loans in the secondary market, a loan could be valued more or less depending on certain conditions. For instance, a loan would be valued less if the borrower has a history of late payments, as this indicates a higher risk of default. Conversely, if interest rates have fallen since the loan was issued, the loan becomes more valuable because it represents an opportunity to earn interest at a rate higher than what is currently available in the market.
When discussing changes in the financial market, particularly the quantity of loans made and received, a rise in supply will generally lead to an increase, as more loanable funds are available for borrowers.
Lastly, the difference between how an individual and how a bank would characterize bank deposits and loans in terms of assets and liabilities is quite distinct. For an individual, bank deposits are an asset and loans are a liability. For a bank, however, deposits are a liability (since they owe this money to depositors), and loans are an asset (since the bank expects to receive payments with interest).