Loans should be recorded as a liability on the balance sheet at their:
A)original outstanding balance.
B)year-end outstanding balance.
C)average outstanding balance.
D)current outstanding balance.
E)beginning outstanding balance.

Question

Quizplus · Accepted Answer

Loans should be recorded as a liability on the balance sheet at their current outstanding balance. This is because the balance sheet presents a snapshot of the company's financial position at a specific point in time, and thus should reflect the most up-to-date information available.

Loans Should Be Recorded as a Liability on the Balance