The Act of Lending Money at an Excessively High Interest

question 43

True/False

The act of lending money at an excessively high interest rate is called loan sharking.

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Definitions:

Bank Loan Payable

Bank loan payable is a liability account that reflects the amount of money borrowed from a bank by a company or individual that is yet to be repaid.

Machinery

Consists of the machines and equipment designed to perform specific tasks in industrial, commercial, or agricultural applications.

Accounts Receivable

Amounts owed to a company by customers for goods or services delivered on credit.