Definition term (1) a revenue not yet earned; collected in advance. deferred revenueselected answer correct (2) rent not yet collected; already earned. not attempted (3) property taxes incurred; not yet paid. not attempted (4) rent revenue collected; not yet earned. not attempted (5) an expense incurred; not yet paid or recorded. not attempted (6) office supplies on hand to be used next accounting period. not attempted (7) an expense not yet incurred; paid in advance. not attempted (8) a revenue earned; not yet collected.

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.