Diverting Proceeds of Business Loans for Personal Use Is Known

question 12

True/False

Diverting proceeds of business loans for personal use is known as unauthorized disbursements.

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Definitions:

Contingent Liability

A potential financial obligation that may arise depending on the outcome of a future event.

Journal Entry

A record in accounting that denotes a business transaction, including information on the accounts affected and whether they are debited or credited.

Footnotes

Additional information provided at the bottom of financial statements to provide more detail or clarify the data presented in the statements themselves.

Lessor Maintains Control

A leasing arrangement where the lessor retains substantial control or rights in the leased asset during and after the lease term.