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If a Shareholder Has Borrowed Money from a Company and Is

Question 8

Multiple Choice

If a shareholder has borrowed money from a company and is expected to pay it back within 9 months, how would the amount be reported on the balance sheet?


A) As an accounts receivable.
B) As a loan receivable in current assets.
C) As a loan receivable in shareholders' equity.
D) As a reduction from retained earnings.

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