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Krugman Tractors and Heavy Machinery borrowed money from Atlantis Bank. The loan is repayable in ten years and with an interest rate of 2.5 percent. What is Atlantis Bank’s type of account in Krugman’s books of accounts?

proprietor

investor

debtor

creditor

Verified Answer :

parkesimpson

I would say, creditor because if we are talking interest rate and a loan it goes right on your creditor. hope this helps mark me brainliest

Zeeta26

Answer:

D. Creditor

Explanation:

A Creditor is a company, person or organization that provides goods, services or monetary loan to another person or company to be repaid at a stipulated later date.

In this context, Atlantis bank is the creditor who provided the loan to Krugman Tractors (the debtor). Krugman Tractors would record the loan on their book of accounts (balance sheets) as a non-current (or long-term) liability.

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