The money owed by a business to its bank related to an outstanding loan would be considered a
A) Revenue
B) Asset
C) Liability
D) Equity

Question

Quizplus · Accepted Answer

The money owed by a business to its bank related to an outstanding loan would be considered a liability because it represents a debt that the business owes and needs to pay back to the bank. It does not generate revenue and it is not an asset that the business owns. It also does not represent equity because it is not a share of ownership in the business.

The Money Owed by a Business to Its Bank Related