SSC CGL (Prelims) GK: Accounting and Auditing questions with solutions

Q1. If the assets of a bank are greater than its liabilities, it will be recorded as:

1. liabilities
2. net worth
3. reserves
4. assets

Answer: net worth

When a bank’s assets exceed its liabilities, the excess amount represents the owners’ claim on the business. This is recorded as net worth (or equity).