BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is a liability?
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Unit trust
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Bank loan
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Investment
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Fixed deposit
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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.