A. One day a customer came to your Bank and gave you money to repay an old loan that the bank had written off years ago. Which of the following options best describes what should be done with the funds?

1 You are required to revise the financial statements for the year the loan was written-off to reflect the recovery of the funds.

2 Since no interest has been paid on the loan for many years you should calculate how much interest is owing then apply that portion of the recovered funds to loan interest and the rest to profit.

3 The funds are considered a recovery of a previously written-off loan and will be considered profit to the bank in the year they were received.

4 You can use the funds for any purpose you like providing it benefits the Bank.

B. Amanda has a loan with Everyday Bank with a balance owing of $2,000.00. She has not made a payment for over 6 months and you have tried calling her and sending her letters but they were returned not at this address. Her employer verified that she no longer works for them and her credit bureau report does not show a recent address or employer. Which of the following actions would have the best chance of recovering some of the borrowed funds from Amanda?

1. Obtain a judgment in court indicating Amanda owes Everyday Bank $2,000.00.

2. Contact the local police department and ask them if they can locate Amanda for you.2

3. Hire a third party collection agency to collect Amandas debt and pay them a percentage.

4. Contact the Government and ask them to provide you Amandas current address and contact informat