Loan (Liability): A loan, when taken from a lender, is a liability for the borrower. This is because the borrower is obligated to repay the loan amount along with any accrued interest according to the agreed-upon terms. For the borrower, the loan represents a financial obligation that needs to be settled in the future.
Loans Advance (Asset): Loans advance, on the other hand, represent money that a business has lent to others. It is an asset because it represents a future economic benefit - the borrower will repay the loan amount along with interest, generating revenue for the lender.
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