A local specialty gift store had to borrow money from a local bank to purchase Christmas merchandise to sell in the store. What is this debt owed to the bank called?
A) liability
B) debit
C) owners' equity
D) credit

Question

Quizplus · Accepted Answer

The debt owed to the bank is called a liability, which is something that a person or company owes to another party. Debit and credit refer to types of transactions or accounts, while owners' equity refers to an individual's or company's ownership stake in an asset.

A Local Specialty Gift Store Had to Borrow Money from a Local