Mason Corporation borrows funds for the expansion of its business. The loan is secured with the office building. Therefore, the office building serves as _____ for the loan.
A) a liability
B) collateral
C) debt
D) insurance
E) corporate deposit

Question

Quizplus · Accepted Answer

The office building serves as collateral for the loan, meaning that it provides security for the lender in case the borrower defaults on the loan. It is not a liability or debt for Mason Corporation, nor is it insurance or a corporate deposit.

Mason Corporation Borrows Funds for the Expansion of Its Business