The financial accounting "element" that best describes a loan payable to a bank is
A) Assets
B) Liability
C) Equity
D) Expense
E) Revenue

Question

Quizplus · Accepted Answer

A loan payable to a bank represents a liability, as the company owes a sum of money to the bank and must eventually repay it. This liability is recorded on the balance sheet as a current or long-term liability, depending on the terms of the loan.

The Financial Accounting "Element" That Best Describes a Loan Payable