0
It Depends:
- If you are the bank, then the loan is an asset because, the loan customer is going to repay you the loan amount with interest and you are going to earn an income from it.
- If you are the loan customer, then the loan is a liability because you are going to return the money along with interest to the bank that gave you the loan.
What else can I help you with?
Is a positive balance in your cheque account a asset or liability to you and the bank?
For Bank: Liability For You: Asset
Is cash at the bank an asset or liability?
Cash at the bank is an asset for you but a liability for the bank if it is held in a checking or regular savings account.
Cash at the bank as an asset and as a liability?
ASSET
Is a bank loan a financial asset?
Bank loan is a liability for business not an asset for business.
What is net liability?
Asset - Liability = Net Asset / Liability * Net Asset - When Asset is more than Liability * Net Liability - When Liability is more than Asset
What has the author Kelly R Eckhold written?
Kelly R. Eckhold has written: 'Bank asset valuation and risk in Australasia' -- subject(s): Mathematical models, Prices, Bank stocks, Asset-liability management (Banking), Asset-liability management
What has the author John W Bitner written?
John W. Bitner has written: 'Successful bank asset/liability management' -- subject(s): Asset-liability management
How do you calculate the working capital of a bank?
net working capital of bank is the difference of current asset and current liability of a bank.
Is loaned cash an asset?
Yes, it is a current asset as part of the cash at bank. It also creates a liability for the amount of the loan.
Is a bank loan considered an asset or a liability on a company's balance sheet?
A bank loan is considered a liability on a company's balance sheet because it represents money that the company owes to the bank.
Is cash a liability or asset?
Cash is an asset like money in the bank (this is something that you OWN). Bank loans and overdrafts (things that you OWE) are liabilities. The easiest way they teach it in accounting is: whatever you own (like money in the bank/cash/company vehicles) is an asset. But whatever you owe (like bank loan - that will need repayment/VAT owing to HMRC) is a liability.
Are deposits asset or liability?
Deposits are considered liabilities for a bank because they represent money owed to customers who have deposited their funds. The bank must return these deposits upon demand, making them a financial obligation. For the depositor, however, the deposit is an asset since it represents a claim on the bank's resources. Thus, the classification depends on the perspective: a liability for the bank and an asset for the depositor.
