How do I show a car loan in my business balance sheet?

I'm completing my financial statements for my company for the first time. Where do I put my business car loan?

Answer
Financial statements may seem intimidating at first, but they’re nothing to sweat—just take your time. Car loans will be listed in the liabilities section of your statement since they represent money you owe.
On the other hand, the actual cash value (ACV) of your vehicle(s) will be listed in the assets section, since it represents money you have.
By subtracting your car loan balance from the car’s actual cash value, you can determine whether you have positive equity or negative equity (also known as being upside down) on your loan.
Additionally, car insurance will not show up on your statement. Instead, insurance will show up on your income sheet as an expense. If you’re in the market for a more affordable insurance policy for your financed car, use Jerry to compare quotes and find a cheaper rate.
Eric Schad
Answered on Oct 29, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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