Bond investments are long-term assets that earn interest revenue,while bonds payable are long-term liabilities that incur interest expense.

Question

Quizplus · Accepted Answer

Bond investments represent the money invested by a company or an individual in purchasing a bond issued by another company or government. These bonds earn interest revenue for the investor. On the other hand, bonds payable represent the amount of money a company owes to its creditors for issuing bonds. These bonds incur interest expense for the company. Hence, the statement is true.

Bond Investments Are Long-Term Assets That Earn Interest Revenue,while Bonds