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Loan stock is considered a liability in a corporate balance sheet. This is because it represents borrowed funds that need to be repaid by the company to the lenders. It does not represent ownership or equity in the company.

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5mo ago
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9y ago

Loan stock is considered a liability. Whereas the nature of the expenditure is collateral base. While it is initially used as an asset to company it is a loan, therefore a liability.

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Q: In a corporate balance sheet is loan stock considered an asset liability or equity?
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