Question

The corporate finance officer at Hall Gardening is entering the cost of a $100,000 capital loan on the company's financial statements. She will enter
it (Select all that apply.)

on the profit/loss statement as an expense

on the balance sheet as an asset

in a separate portfolio to compare actual to estimated return on investment

on the balance sheet as a liability

Answer 1

Answer:

on the balance sheet as a liability

Explanation:

The balance sheet is the financial record or statement that reports on a company's assets, liabilities, and equity. It is the financial reports that communicate the financial status of a balance.

The balance sheet captures assets on one side and equities and liabilities on the other. A loan is a  debt or money owed to others. It is a liability to the business and is recorded on the liabilities side. It will be included in current liabilities if it is to be paid within one year or long term liabilities if more than one year.