Which of the following is incurred by a business when it borrows money?
A) An accumulated depletion
B) A liability
C) A loss
D) An accrued expenditure

Question

Quizplus · Accepted Answer

When a business borrows money, it creates a liability on its balance sheet. This is because the business owes the borrowed money to the lender and must repay it according to the terms of the loan agreement. The other options (accumulated depletion, loss, accrued expenditure) are not directly related to borrowing money.

Which of the Following Is Incurred by a Business When