interest earned on the cash balance in the bank is recorded by the bank as: multiple choice an increase in the bank’s asset account. an increase in the bank’s expense account. a decrease in the bank’s asset account. a decrease in the depositor’s bank account. an increase in the depositor’s bank account.

A savings account is a type of account that can be opened with a bank. Savings account earn interest based on the amount of money in their account at the end of the month.

The interest that is earned depends on the number of withdraws, interest rate paid on deposits and the amount deposited in the account. Deposits are recorded as a liability in the balance sheet of a bank. A liability is an obligation that has to be paid at sometime in the future.

This means that at the end of the month, the value of the money in the depositor's saving account increases by the value of interest paid.

For example, if the interest paid by a bank on deposits in a savings account is 10%. If an account has $1000 in the account, the value of the amount at the end of the month is 1,100 (1000 x 1.1).

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