For each statement provided, choose the letter of the appropriate term from the list that each statement best describes.Some terms may be used more than once, while others are not used at all.
-An entity that lends a company money with the expectation of repayment.
A)Capital stock
B)Asset
C)Owners' equity
D)Time period
E)Dividends
F)Economic entity concept
G)Expense
H)Retained earnings
I)Cost principle
J)Creditor
K)Liability
L)Revenue
M)Going concern
N)Monetary unit
O)Corporation

Question

Quizplus · Accepted Answer

A creditor is an entity that lends money to a company with the expectation of repayment.

Answer: K
 A liability is the obligation of a company to repay a creditor, usually in the form of borrowed funds.

Answer: O
 A corporation is a type of entity that is separate from its owners and can issue stock to raise capital for its operations.

For Each Statement Provided, Choose the Letter of the Appropriate