Multiple Choice QuestionDebt forgiveness involves the lender's giving the borrower an IOU and is therefore considered a(n) Blank______ transaction.Multiple choice question.deficitassetbarterbalanced
Question
Multiple Choice QuestionDebt forgiveness involves the lender's giving the borrower an IOU and is therefore considered a(n) Blank______ transaction.Multiple choice question.deficitassetbarterbalanced
Solution
The correct answer is "asset". Debt forgiveness is considered an asset transaction because the lender is essentially giving the borrower an asset, in this case an IOU, which is a document acknowledging debt.
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