Financial Accounting Fundamentals | Online Course Support

The Garden Spot obtains a 4-year loan of $10,000 from a bank. In which of the following Balance Sheet accounts should The Garden Spot 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.

Similar Posts