If Bank A sells some its loans to Bank B for cash, everything else equal: bank a becomes less liquid while bank b becomes more liquid bank a's liabilities decrease by the amount of the loans that are sold bank A's assets decrease and bank b's assets increase banks a's total assets do not change, but bank a is more liquid

If Bank A sells some its loans to Bank B for cash, everything else equal: bank a becomes less liquid while bank b becomes more liquid bank a's liabilities decrease by the amount of the loans that are sold bank A's assets decrease and bank b's assets increase banks a's total assets do not change, but bank a is more liquid

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 7MC: What is the effect on cash when current noncash operating assets increase? A. Cash increases by the...

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