Andy's line of credit with a local bank is likely a(n)
A) intangible asset.
B) prepaid expense.
C) current liability.
D) account receivable.
E) long-term liability.

Question

Quizplus · Accepted Answer

A line of credit is a type of borrowing agreement that constitutes a current liability. It allows a borrower to access funds up to a predetermined credit limit whenever needed, making it a short-term credit facility.

Andy's Line of Credit with a Local Bank Is Likely