Is bonds payable a current liability?
Understand the Problem
The question is asking whether bonds payable, a financial term, is classified as a current liability in accounting. To address this, we'll consider the definitions and characteristics of current liabilities and how bonds payable fits into these classifications.
Answer
No.
The final answer is No.
Answer for screen readers
The final answer is No.
More Information
Bonds payable are typically classified as long-term liabilities. They are only considered current liabilities if they are due to be paid within one year from the balance sheet date.
Tips
A common mistake is to assume all debt is current liability. Always check the maturity date to determine the correct classification.
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