Bonds Payable should be classified as a long-term liability on a balance sheet unless the issue is
A) not maturing within one year of the balance sheet date.
B) maturing within one year of the balance sheet date and is to be paid by segregated assets that are classified as long-term assets.
C) maturing within one year of the balance sheet date and is to be retired by the use of current assets.
D) maturing within one year of the balance sheet date and is to be replaced by another bond issue.

Question

Quizplus · Accepted Answer

Bonds Payable are classified as long-term liabilities unless they are maturing within one year and will be paid using current assets, in which case they are classified as current liabilities.

Bonds Payable Should Be Classified as a Long-Term Liability on a Balance