Regarding Credit Lines, please select the correct answer

Question

Accepted Answer

Credit lines are a financial liability where the first entry affecting the credit side of the balance sheet of the company will take place whenever the first drawdown takes place

Answer

I do not know the answer

Answer

Credit lines are a financial liability that bear an interest expense and that are posted at the end of each period at the amortised cost based on the amortised cost table

Answer

The first entry to be posted in a credit line will be always when we sign the contract, and we will debit cash and credit the financial liability only for the available amount on that date

Answer

Credit lines are not a financial liability as we do not post any entry regarding credit lines until we do the first interest payment

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Regarding Credit Lines, please select the correct answer

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