First Bank Has Agreed to Loan Teresa $10,000 for Use

question 10

True/False

First Bank has agreed to loan Teresa $10,000 for use in her cosmetics business.If Teresa sells the business to Melissa before the loan is disbursed,Teresa can assign her right to the loan to Melissa.

---

Definitions:

Dividends Account

An account used in bookkeeping that tracks dividends declared by a company to be paid out to its shareholders.

Temporary Account

An account used to collect balances over an accounting period that are then transferred to a permanent account.

Stockholders' Equity

The remaining interest in a company's assets after all liabilities are subtracted, indicating ownership.

Real Accounts

Accounts that represent assets, liabilities, and equity, remaining open to accumulate financial information over several periods.