Discount on Bonds Payable is classified as a current liability.

Name: Discount on Bonds Payable is classified as a current liability.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Discount on Bonds Payable is classified as a long-term liability, not a current liability. It represents the difference between the face value of a bond and the amount paid for it by investors, and it is amortized over the life of the bond as interest expense.

Discount on Bonds Payable Is Classified as a Current Liability