Accounting: is there any inventory on a bank's balance sheet?
I'm trying to work out the quick ratio for a bank, but it seems like there is no "inventories on the balance sheet" Am I Right ? if yes How can i work out the quick ratio then? if i'm wrong , is there another name for inventories? Then , Should "net investment on home purchase plan" be considered as an inventory?
Other - Business & Finance - 1 Answers
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Answer 1 :
Generally not because they do not SELL tangible products. The only exception to that would be REO properties. To answer your second question, that account description does not sound like an inventory account. However, I would need to see the activity in the account to give a definate answer. Sorry!
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