If the value of Android Bank's assets falls by £226m, Android Bank will be insolvent. Select one: True False

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The table below shows balance sheet data, in £m, for a phone-based bank, Android
Bank:
£m
loans to corporati ons
50
loans to households
600
300
AndroidBank's holdings of shares and bonds, etc
retail current account deposits (deposits by general public with AndroidBank)
commercial current account deposits (deposits by companies with AndroidBank)
tangible assets and property
1500
50
500
cash in vaults
50
reserve deposits with Bank of England (deposits by AndroidBank)
borrowing by AndroidBank in money market
300
25
Transcribed Image Text:The table below shows balance sheet data, in £m, for a phone-based bank, Android Bank: £m loans to corporati ons 50 loans to households 600 300 AndroidBank's holdings of shares and bonds, etc retail current account deposits (deposits by general public with AndroidBank) commercial current account deposits (deposits by companies with AndroidBank) tangible assets and property 1500 50 500 cash in vaults 50 reserve deposits with Bank of England (deposits by AndroidBank) borrowing by AndroidBank in money market 300 25
If the value of Android Bank's assets falls by £226m, Android Bank will be insolvent.
Select one:
O True
O False
Transcribed Image Text:If the value of Android Bank's assets falls by £226m, Android Bank will be insolvent. Select one: O True O False
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