Question

In order for the gift market, a local specialty store, to purchase christmas merchandise for selling in its store, it had to borrow money from a local bank. this debt owed to the bank is a

Answer 1

The one that fits here is liability. All the debts owed by a business are called liabilities. We can say that is a normal debt or obligations that arise during the course of its business operations. These ones are settled over time through the transfer of economic benefits including money, goods or services.