Tree Down Landscaping recently took out a mortgage for its new vehicle storage facility. When it prepares its balance sheet, the mortgage will be classified as
A) a fixed asset.
B) owner's equity.
C) a short-term liability.
D) an intangible asset.
E) a long-term liability.

Question

Quizplus · Accepted Answer

A mortgage is a type of loan used to finance the purchase of real estate and is typically paid back over a long period of time, making it a long-term liability on a company's balance sheet.

Tree Down Landscaping Recently Took Out a Mortgage for Its