Company a Lends $100,000 to Company B

question 89

Multiple Choice

Company A lends $100,000 to Company B.The interest on the loan is reported:

• A)as an expense to Company A and a revenue to Company B.
• B)as an asset to Company A and a revenue to Company B.
• C)as an asset to Company B and a liability to Company A.
• D)as an expense to Company B and a revenue to Company A.

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Definitions:

Residential Community

A geographic area where people live close to one another and share common spaces or amenities, often governed by specific rules or associations.

Nursing Home

A residential facility offering a high level of care for the elderly or those with severe health issues, including medical and personal care.

Multigenerational Home

A household setup where more than two generations of the same family live under one roof, such as grandparents, parents, and children.

Nursing Home

A residential facility for elderly or disabled people who require constant nursing care and have significant deficiencies with activities of daily living.