Question

A bank statement is presented from the customer's point of view. Therefore, a customer deposit reduces the bank's liabilities. These statements are

A. True
B. False

Answer 1

A customer deposit reduces the bank's liabilities.

Step-by-step explanation:

Bank statements are presented from the customer's point of view. When a customer makes a deposit, it is viewed as a liability for the bank. This is because the bank owes the deposit to the customer when they wish to withdraw their money. Therefore, the statement that a customer deposit reduces the bank's liabilities is true.