If a Shareholder Has Borrowed Money from a Company and Is

question 8

Multiple Choice

If a shareholder has borrowed money from a company and is expected to pay it back within 9 months, how would the amount be reported on the balance sheet?

• A)As an accounts receivable.
• B)As a loan receivable in current assets.
• C)As a loan receivable in shareholders' equity.
• D)As a reduction from retained earnings.

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