Question

Long term loan:
(a) Liability
(b) Expense
(c) Income
(d) Asset ​

Answer 1

Answer:

liability

Explanation:

l hope this is helpful to you

Answer 2

ANSWER :

★ (a) Liability

• ➺ Long term loan is a Liability.

____________________________________________________________

EXPLANATION :

• ✎ Liability :- In accounting, the term "liability" refers to the amount which a business entity is required to pay in future. It is the future monetary obligation of a business.

• ✎ Income :- In accounting, the term "income" refers to excess of revenue over expenses. Income of a business is the amount which is obtained after deducting the amount of expenses from the amount of revenue.

• ✎ Expense :- In accounting, the term "expense" refers to the cost incurred for the purpose of generating revenue by producing, providing and selling goods and services by a business entity.

• ✎ Asset :- In accounting, the term "asset" refers to anything that is in the possession or is the property of a business. It is something which enables a business to generate benefit in future.

When a business firm take loans, the firm have to pay the amount in future. Hence, it is a liability.

Long term loans are the loans which are taken for a long period of time such as loan from banks for purchase of machinery, debentures etc.