Financial Accounting Fundamentals | Online Course Support

College Computers obtains a 3-year loan of $9,000 from a bank. In which of the following Balance Sheet accounts should College Computers record the obligation to repay the loan?

 
 
 
 
 
 

Correct answer. Since a future payment is probable and the event (obtaining the loan) has occurred, the obligation to repay the loan should be recorded in a Liability account.

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