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On January 1, 2021, the general ledger of Dynamite Fireworks shows the following account balances:

User Jefftopia
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Final answer:

The question is about a change in Singleton Bank's business plan that resulted in an update to its balance sheet, where assets now include $1 million in reserves and a $9 million loan to Hank's Auto Supply, yet it still maintains $10 million in deposits.

Step-by-step explanation:

The subject of the question is related to the Business field, specifically within the topic of banking and finance. It deals with the impact of a change in business strategy on the balance sheet of a bank named Singleton Bank.

According to the given information, Singleton Bank made alterations to its balance sheet, likely due to a revised business plan.

As a result, Singleton's assets now include $1 million in reserves and a $9 million loan to Hank's Auto Supply. Despite these changes, the bank maintains $10 million in deposits, indicating no change in its liabilities.

This example illustrates how restructuring the assets of a bank, such as adjusting the level of reserves or changing the distribution of loans, affects the overall financial statement without necessarily altering the total amount of deposits the bank holds.

User AlwaysQuestioning
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