Debt Service Payments Appear in

question 19

Multiple Choice

Debt service payments appear in

• A)the current account.
• B)the capital account.
• C)the cash account.
• D)errors and omissions.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, which can own property, incur debt, sue and be sued.

Partnership

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership agreement.

Personal Liability

The legal responsibility of an individual to settle debts or obligations from their own assets, rather than those protected by a corporation or limited liability entity.

Business Debts

Obligations that a business incurs as a result of operating activities, including loans, accounts payable, and any other form of borrowed money.