Gus takes his $15 in lemonade stand earnings and deposits it into his savings account. Meanwhile, Gus’s dad borrows $20,000 to b

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Gus takes his $15 in lemonade stand earnings and deposits it into his savings account. Meanwhile, Gus’s dad borrows $20,000 to b

uy a new family car. Gus’s $15 represents a(n) ____ for the bank, while his dad’s $20,000 loan represents a(n) ____ for the bank

Business

1 answer:

harina [3.8K] · Answer 1 · 2026-04-02T12:45:58+03:00

liability, asset. Liabilities represent future obligations that a business must fulfill, expressed in monetary terms. They are categorized based on their due periods into current and long-term liabilities, such as payments owed to a supplier or a loan repayment. On the other hand, assets indicate something that provides future economic advantages. Assets can take various forms, including tangible fixed assets, movable assets, or intangible assets like Goodwill. In this context, regarding a bank's standpoint, the acceptance of deposits by the bank is considered a liability because it needs to pay these deposits when the customer requests them. Conversely, the loans given by the bank are viewed as assets, as the bank is expected to receive these amounts back along with interest in the future.