MANAGEMENT

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is a liability?
A
Unit trust
B
Bank loan
C
Investment
D
Fixed deposit
Explanation: 

Detailed explanation-1: -Loans from bank is the only liability among the above options. All the others are assets of the business.

Detailed explanation-2: -Bank debt is a long-term liability a business takes on by borrowing money from its bank. It appears under liabilities on the balance sheet as part of all the money the company owes its creditors.

Detailed explanation-3: -Loans are assets for the banks and deposits are liability for the bank. Deposits are to be repaid to the customers when asked for or on maturity.

Detailed explanation-4: -liability; asset. A bank loan earns income for the bank, so it’s an asset. However, the borrower has to pay the loan back along with interest, so it’s a liability.

There is 1 question to complete.