Aloan:
A)is an asset for both the lender and the borrower.
B)is an asset for the lender and a liability for the borrower.
C)is a liability for the lender and an asset for the borrower
D)is a liability for both the lender and the borrower.

Question

Quizplus · Accepted Answer

A loan is considered an asset for the lender because it represents money the lender will receive, including the principal and interest. For the borrower, it is a liability because it is an obligation to pay back the borrowed funds.