What are bonds payable? A) a long-term liability based on purchases m

QUESTION

What are bonds payable?

A) a long-term liability based on purchases made on credit
B) a long-term liability based on money loaned to the firm
C) money that is owed to the company by customers buying on credit
D) assets that are not as easily liquidated as others
E) merchandise that has been bought by customers but not removed from inventory

ANSWER

Answer: B
Explanation: B) Bonds payable are long-term liabilities that represent money loaned to a firm that must be paid off over a period of several years.