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a business has a 5 year repayments loan carrying an interest rate of 5%, At year end, there is total debt outstanding of $500,000 and
a business has a 5 year repayments loan carrying an interest rate of 5%, At year end, there is total debt outstanding of $500,000 and accrued interest of $25,000. The loan is readable in 5 remaining equal instalments. How should this debt be presented in a financial statement.?
a.long term liability $400,000 Current liability $125,000
b.Long term liability $525,000
c.long term liability $500,000 current liability $25,000
d.current liability $525,000
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