Funds that a manager can access at any time up to an amount agreed upon between the bank and the company are called a line of ________.
A)debit
B)credit
C)asset
D)liability

Question

Quizplus · Accepted Answer

A line of credit is a type of loan that allows a company to borrow funds up to a certain limit, and it is typically revolving, meaning that the funds can be borrowed, repaid, and borrowed again. The company only pays interest on the funds borrowed, and they have the flexibility to access the funds as needed. A line of credit is considered a liability on the company's balance sheet, as they are obligated to repay the borrowed funds.

Funds That a Manager Can Access at Any Time Up