Chestelle Corporation, a sports equipment manufacturing company, borrows a considerable sum of money as loan from GRJ Bank, a private bank, at a time of financial crisis. The corporation has four years to repay the principal amount along with the interest to the bank. In this scenario, the money that Chestelle Corporation owes the bank represents its _____.

Question

Quizplus · Accepted Answer

The money borrowed by Chestelle Corporation from the bank is a long-term liability because it is a debt that the company is obligated to repay over a period longer than one year.

Chestelle Corporation, a Sports Equipment Manufacturing Company, Borrows a Considerable