Miguel decided to open a lemonade stand on Saturdays. Match Miguel's business activities to the following balance sheet items. (Note: each balance sheet item can only be used once).
-Borrowed cash from Dad to be repaid in two years.
A) Long-term liability
B) Accounts payable
C) Accounts receivable
D) Long-term asset
E) Inventory
F) Cash

Question

Quizplus · Accepted Answer

Borrowing cash from Dad to be repaid in two years is considered a long-term liability because it is a debt that will be repaid over a period longer than one year.

Miguel Decided to Open a Lemonade Stand on Saturdays