A bond liability usually should be reclassified as a current liability when the maturity date of a bond issue is within one year of the current statement of financial position date,or within the operating cycle (whichever is longer).

Question

Quizplus · Accepted Answer

This statement is true. Bond liabilities are usually classified as long-term liabilities. However, if the bond matures within one year of the current statement of financial position date, or within the operating cycle (whichever is longer), it should be reclassified as a current liability.

A Bond Liability Usually Should Be Reclassified as a Current