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



Answer :

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.


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