You are a loan advisor with the federal small-business development agency. You have recently approved a $100,000 loan to a local media company. The company presented a solid business plan and has been performing well to date. The loan bears interest at a market rate of 8% and must be repaid in five years. 

How should this be reflected in the accounting?

Answer rating: 100% (QA)

The loan should be recorded as a liability on the balance sheet of t... View the full answer