A company owes $200,000 on a bank loan.If this loan is documented using a formal written debt contract,it will be reported as a liability called Notes Payable.
BT: Comprehension

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This statement is true. When a company borrows money and documents the loan using a formal written debt contract, it is reported as a liability on their balance sheet called Notes Payable.

A Company Owes $200,000 on a Bank Loan