In the liabilities section of its 2010 balance sheet, Bank of America reported noninterest-bearing deposits of over
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a. For each of the preceding liabilities, write a brief explanation of what you believe the nature of the liability to be and how the company will pay it off. To develop your answers, think about the nature of the industry in which each of the companies operates.
b. Of the three liabilities described, which do you think poses the most risk for the company? In other words, for which liability are actual costs most likely to exceed the liability reported on the balance sheet? Uncertainty creates risk.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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