Loan capital, including overdrafts.

Loan capital, including overdrafts.

• A. Accounts Payable
• B. Bank Debt
• C. Securities
• D. Fixed Assets or Long-Term Assets

Answer: (B)

Loan capital is a form of debt financing obtained from lenders, such as banks, and overdrafts are a classic example of that borrowing from a bank. The phrase includes this kind of bank-based borrowing, which is why bank debt is the right choice. Other items describe different things: accounts payable are amounts owed to suppliers and are a current liability, not a borrowing from a bank. Securities are financial instruments used to raise funds and can be debt or equity, but the term loan capital specifically points to borrowings from lenders like banks, not issued instruments. Fixed assets or long-term assets are resources the company owns, not sources of borrowed funds.

Loan capital is a form of debt financing obtained from lenders, such as banks, and overdrafts are a classic example of that borrowing from a bank. The phrase includes this kind of bank-based borrowing, which is why bank debt is the right choice.

Other items describe different things: accounts payable are amounts owed to suppliers and are a current liability, not a borrowing from a bank. Securities are financial instruments used to raise funds and can be debt or equity, but the term loan capital specifically points to borrowings from lenders like banks, not issued instruments. Fixed assets or long-term assets are resources the company owns, not sources of borrowed funds.