Describe the typical commercial banks’ balance sheet as well as its main items and describe the...

Describe the typical commercial banks’ balance sheet as well as its main items and describe the structure of a typical investment banks’ balance sheet as well as its main items.

Expert Solution

ANS: Balancesheet of any entity shows the True & Fair view of its financial position. It's shows the position of Assets & Liabilities as on the particular date (31st march) of any financial year.

Balancesheet of Commercial Bank shows the picture of its functioning, its liquidity, risk assets, Non- performing Assets & so on.

Format of Commercial Bank Balancesheet

Liabilities	Schedule No.	Amount
Capital	1
Deposit - Saving, Current, FD etc	2
Borrowings	3
Other Liabilities & Provision	4
Total		XXXX
Assets
Cash Balance with RBI	6
Balance with Bank	7
Investment	8
Advances	9
Fixed Assets	10
Other Assets	11
Bills of Exchange	12
Total		XXXX

Investment bank is a financial intermediary that put its hand into various sector/segments such as- buying & selling of Securities, underwriter, broker, financial advisior, issuing Initial Public offer, etc

Format of Balancesheet of Investment Bank

Liabilities	Amount
Shareholders fund i.e common stock & preferred stock
Reserve fund
Loan fron central bank
Deposits from customers
Trading liabilities
Any other debt
Total	XXXX
Assets
Cash in hand & Balance with central bank
Treasury Bills
Loans & advances
Intangible assets such as goodwill, patents, Know-how
Plant, property & equipments
Other assets
Total	XXXX

jeff jeffy answered 3 years ago

Essay on 'Discuss the main differences between a commercial banks and investment banks balance sheet.

2. Identify the three main types of commercial banks. Explain how a typical commercial bank is...

2. Identify the three main types of commercial banks. Explain how a typical commercial bank is capitalized.

Below is the simplified balance sheet of Gorgonzolan commercial banks at some point in time. Assets...

Below is the simplified balance sheet of Gorgonzolan commercial banks at some point in time. Assets Currency (= reserves) 400,000 Loans 200,000 Liabilities Deposits 600,000 Assume that the Gorgonzolan commercial banks desire to hold reserves of 40 percent of deposits and that the public holds no currency long term. Instructions: Enter your responses as whole numbers. a. Given the data in the balance sheet, the Gorgonzolan commercial banks want to hold in reserves. b. The Gorgonzolan commercial banks currently have...

1. The largest item on the combined balance sheet of US commercial banks is: Select one:...

1. The largest item on the combined balance sheet of US commercial banks is: Select one: a. Cash b. Securities c. Loans 2. There is an inverse relationship between the level of a bank’s equity capital and its most common measure of profitability. Select one: True False 3. Nonfinancial firms finance the vast majority of their investment through: Select one: a. Banks b. Internal funds c. Financial markets

Entity A reported the following items on its balance sheet at the end of the current...

Entity A reported the following items on its balance sheet at the end of the current year. All accounts are listed. Cash $45,000 Accounts payable 80,000 Property, plant & equipment 200,000 Long-term debt 60,000 Common stock 150,000 Accounts receivable 90,000 Retained earnings ? Inventory 75,000 What is Entity A’s Retained Earnings balance at the end of the current year? $270,000 $410,000 $140,000 $120,000 2.5 points QUESTION 6 Entity I forgot to record four adjusting entries during 2019. Which one...

To create a common size balance sheet all items on the balance sheet by ....

To create a common size balance sheet ____________ all items on the balance sheet by ____________. 1. multiply; owners equity 2. multiply; total assets 3. divide; owners equity 4. divide; total assets 5. multiply; debt

Contrast the balance sheet of a property-casualty insurance company with the balance sheet of a commercial...

Contrast the balance sheet of a property-casualty insurance company with the balance sheet of a commercial bank. Explain the balance sheet differences in terms of the differences in the primary functions of the two organizations.

Clyde’s Well Servicing has the following financial statements. The balance sheet items, profit margin, and dividend...

Clyde’s Well Servicing has the following financial statements. The balance sheet items, profit margin, and dividend payout have maintained the same relationships the past couple of years; these relationships are anticipated to hold in the future. Clyde’s has excess capacity, so there is no expected increase in capital assets. Income Statement Sales $2,000,000 Cost of goods sold 1,260,000 Gross profit 740,000 Selling and administrative expense 400,000 Amortization 55,000 Earnings before interest and taxes 285,000 Interest 50,000 Earnings before taxes 235,000...

QUESTION 5 Entity A reported the following items on its balance sheet at the end of...

QUESTION 5 Entity A reported the following items on its balance sheet at the end of the current year. All accounts are listed. Cash $45,000 Accounts payable 80,000 Property, plant & equipment 200,000 Long-term debt 60,000 Common stock 150,000 Accounts receivable 90,000 Retained earnings ? Inventory 75,000 What is Entity A’s Retained Earnings balance at the end of the current year? $270,000 $410,000 $140,000 $120,000 QUESTION 6 Entity I forgot to record four adjusting entries during 2019. Which one of...

The balance sheet accounts listed below are the only items on the company's balance sheet for...

The balance sheet accounts listed below are the only items on the company's balance sheet for each year and the income statement accounts are the only items on the company's income statement for each year. Item 2017 2018 Accounts payable 550 230 Accounts receivable 510 ? Accruals 1,000 1,100 Cash 300 550 Common Stock 2,000 2,250 Cost of goods sold 4,000 4,600 Depreciation expense 200 350 Interest expense 170 190 Inventory 3,000 3,250 Long term debt 1,500 1,650 Net fixed...

Question