Chestelle Corporation, a Sports Equipment Manufacturing Company, Borrows a Considerable

Multiple Choice

Chestelle Corporation, a sports equipment manufacturing company, borrows a considerable sum of money as loan from GRJ Bank, a private bank, at a time of financial crisis. The corporation has four years to repay the principal amount along with the interest to the bank. In this scenario, the money that Chestelle Corporation owes the bank represents its _____.

A) long-term liability
B) accumulated depreciation
C) owners' equity
D) bequest value