Is bonds payable a liability?
Understand the Problem
The question is asking whether bonds payable are classified as a liability in accounting terms. Bonds payable are indeed a type of liability because they represent money that a company owes to bondholders.
Answer
Bonds Payable are a liability.
The final answer is Bonds Payable are a liability.
Answer for screen readers
The final answer is Bonds Payable are a liability.
More Information
Bonds Payable are considered liabilities because they represent future financial obligations of the issuer to bondholders, involving both principal repayment and interest payments.
Sources
- The web page with info on - Wall Street Prep - wallstreetprep.com
- Bonds Payable - A guide to understanding bonds to be repaid - corporatefinanceinstitute.com
- Bonds Payable: Understanding the Basics of Accounting for Bonds - finquery.com
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