Loans should be recorded as a liability on the balance sheet at their _____ outstanding balance.
A) original
B) year-end
C) average
D) current
E) beginning

Question

Quizplus · Accepted Answer

Loans should be recorded as a liability on the balance sheet at their current outstanding balance, which reflects any payments made and interest accrued up to the date of the balance sheet. This provides the most accurate representation of the company's obligations to repay the loan at that point in time.

Loans Should Be Recorded as a Liability on the Balance