Question

Irfan is a small business entrepreneur who has taken a mortgage loan to finance his business. He needs to repay the loan over a span of 15 years. Which part of Irfan’s business’s balance sheet would this amount of money be seen?

A.
current assets
B.
fixed assets
C.
current liabilities
D.
long-term liabilities
E.
owners’ equity

Answer 1

D

Step-by-step explanation:

It would belong term liabilities because if it is over 15 years it is a long time.

Answer 2

D.Long term liabilities

Step-by-step explanation:

In simple terms, Long term debts on balance sheet are those loans and other liabilities, which are not going to come due within a period of 1 year from the time when they are created. In general terms, all the non-current liabilities can be called long-term debts, especially for the purpose of finding financial ratios that are to be used for analyzing the financial health of a company.