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Question: What is a bond payable?

 

Question: What is a bond payable? How to identify the amount of bonds payable?

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Expert Solution

 

Step 1: Definition of long-term debt

Long-term debt is a debt that is taken for a long period. The long period usually consists of 10 years, 15 years, 20 years, etc.

Step 2: Meaning of bonds payable

Bond payable is a type of long-term debt in which a company issue bonds to multiple lenders. Bonds payable is a prevalent form of raising millions of dollars from thousands of investors. It reduces the dependency of companies on long-term loans.

 

A bond is a type of debt that a companies issue to fulfill a significant amount of money needs.

Sahil Dangi answered 2 years ago
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