Question

Dan bought three new trucks with a loan obtained from the First National Bank. If he fails to repay the loan, the bank will repossess the trucks. The trucks typically represent:

a) Assets
b) Liabilities
c) Equity
d) Revenue

Answer 1

Trucks typically represent assets in this scenario.

Step-by-step explanation:

Trucks typically represent assets in this scenario. Assets are economic resources that are owned or controlled by an individual or organization. In this case, the trucks are owned by Dan and were obtained through a loan from the First National Bank. If Dan fails to repay the loan, the bank will repossess the trucks.