Money borrowed to pay for assets is called

Question

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Money borrowed to pay for assets is commonly referred to as debt, as the borrower is obligated to pay back the amount borrowed plus interest over a period of time. Owners' equity refers to the portion of a company's assets that are owned by its shareholders, receivables refer to money owed to a company by its customers, and cash flow refers to the movement of money in and out of a company. None of these terms accurately describe money borrowed to pay for assets.

Money Borrowed to Pay for Assets Is Called