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It Depends:
- If you are the bank, then the loan is an asset because, the loan customer is going to repay you the loan amount with interest and you are going to earn an income from it.
- If you are the loan customer, then the loan is a liability because you are going to return the money along with interest to the bank that gave you the loan.
What else can I help you with?
Why is a bank loan a financial asset?
The only way that a bank loan can be an asset is if the loan is less than what the assett is worth. Otherwise I do not belive a bank loan can be an assett. Answer 1: A Bank loan is an asset for the bank because it is money that a customer will repay. Any instrument in which money will be received can be considered an asset. In case of a loan, it is an asset to the bank and a liability to the person who borrowed the money
Is a loan an asset or liability to a business?
Liability
Is bank loan an asset?
A bank loan is an asset for the bank as bank receives interest and principle payments from borrower.
Is a car loan an asset or a liability?
liabities
Is bank loan asset or liability?
It is actually both. Cash received from a bank loan is debited to the asset Cash, at the same time repayment of that loan is listed in Liabilities as usually a Note Payable.This means that your Assets increase by the amount of the loan as well as your liabilities, while Owners Equity (stock holder equity) remains unchanged.
Is a bank loan a financial asset?
Bank loan is a liability for business not an asset for business.
Is a bank an asset or liability?
It Depends:If you are the bank, then the loan is an asset because, the loan customer is going to repay you the loan amount with interest and you are going to earn an income from it.If you are the loan customer, then the loan is a liability because you are going to return the money along with interest to the bank that gave you the loan.
Why is a bank loan a financial asset?
The only way that a bank loan can be an asset is if the loan is less than what the assett is worth. Otherwise I do not belive a bank loan can be an assett. Answer 1: A Bank loan is an asset for the bank because it is money that a customer will repay. Any instrument in which money will be received can be considered an asset. In case of a loan, it is an asset to the bank and a liability to the person who borrowed the money
Is a bank loan considered an asset or a liability on a company's balance sheet?
A bank loan is considered a liability on a company's balance sheet because it represents money that the company owes to the bank.
Is loaned cash an asset?
Yes, it is a current asset as part of the cash at bank. It also creates a liability for the amount of the loan.
Is a loan an asset or liability to a business?
Liability
Interest paid on loan to buy an asset-asset or liability or expense?
Loan acquired to buy an asset is a liability of business so interest incurred on that loan is also part of that loan and that's why it is also the liability of business.
Is a positive balance in your cheque account a asset or liability to you and the bank?
For Bank: Liability For You: Asset
Cash at the bank as an asset and as a liability?
ASSET
Is cash at the bank an asset or liability?
Cash at the bank is an asset for you but a liability for the bank if it is held in a checking or regular savings account.
Is bank loan an asset?
A bank loan is an asset for the bank as bank receives interest and principle payments from borrower.
Is a car loan an asset or a liability?
liabities
