Answered

LOUISIANA STATE FFA FARM BUSINI
CAREER DEVELOPMENT
2022-23
Part I - Short Multiple-Choic
(100 Total Possible Poin
elect Best Answer Only
1. An obligation to pay, such as a loan or account payable
a.
Debit
b. Direct cost
C.
Debt
d. Equity

Verified Answer :

GinnyAnswer

Final answer:

Debt is an obligation to repay, while equity represents ownership shares without the same repayment obligations.


Explanation:

Debt is an obligation to repay, such as a loan or account payable. It involves a contract between a lender and a borrower for the repayment of principal and interest in the future. On the other hand, equity represents ownership shares in assets without the same repayment obligations as debt.


Learn more about Debt and Equity here:

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