3RQ
Question
What is a mortgage payable?
Step-by-Step Solution
Verified Answer
Long-term liability is a liability that is due in more than one yaer.
1Step 1: Definition of mortgage
Mortgage means the long-term loan that is taken on the house or property.
2Step 2: Meaning of mortgage payable
Mortgage payable is a type of liability where the borrower secured its mortgage by assets. The mortgage payable is the current portion of the mortgage that is due in one year. Mortgage reduces the risk of the lenders.
Other exercises in this chapter
1RQ
Where is the current portion of notes payable reported on the balance sheet?
View solution 2RQ
What is an amortization schedule?
View solution 4RQ
What is a bond payable?
View solution 5RQ
What is the difference betwee the stated interest rate and the market interest rate?
View solution