As was the case with the debit balances, there are some items among credits which are of a mixed character. Demand deposits, time deposits, other liabilities, and accrued liabilities are obviously real accounts. Current earnings are obviously nominal items. Reserve items and earnings collected but not yet earned are not so easy to classify. These reserves might be regarded as more real than nominal. Reserve for taxes represents in a way a liability to State and National authorities on account of accruing taxes. The reserve for depreciation account, on the other hand, represents in reality a deduction from real assets. Earnings collected but not yet earned are of a more nominal character as they represent simply items of profit for which credit is to be taken later. Capital, surplus, and undivided profits must be placed in a separate category called "capital liabilities." They represent the excess of assets over liabilities, the present worth of the bank, and the amount due to the stockholders, but due them only if all other liabilities are met.
Current assets and liabilities are those which are turned over or liquidated in the usual course of a business cycle or period, such as in the foregoing statement, such as cash, due from banks, loans and discounts, investments, demand deposits, and time deposits. Fixed assets and liabilities are those of a slower or more permanent character such as real estate, furniture and fixtures, outstanding bonds, farm loan banks and the like. Banks have very few fixed assets and liabilities. This classification is much more applicable as applied to manufacturing, mercantile, and public utility corporations.