Asked by Denver Osborn on Jul 04, 2024
Verified
Mortgage Payable:
A) has a debit balance.
B) has a credit balance.
C) shows the amount expected to be paid within the current period.
D) is an unsecured loan.
Mortgage Payable
A liability that represents the amount of money owed on a mortgage loan, which the borrower must repay to the lender over time.
Credit Balance
A situation where the total credits in an account exceed the total debits; often indicates amounts owed by a business.
Debit Balance
A financial statement condition where debits exceed the amount of credits in an account.
- Gain insight into the classification of assorted accounts and how they are displayed in financial documents.
Verified Answer
ZK
Zybrea KnightJul 09, 2024
Final Answer :
B
Explanation :
Mortgage Payable has a credit balance because it represents a liability on the balance sheet, indicating the amount owed by a company or individual for the purchase of property.
Learning Objectives
- Gain insight into the classification of assorted accounts and how they are displayed in financial documents.