4RQ
Question
What is a bond payable?
Step-by-Step Solution
Verified Answer
A bond is a type of debt that a companies issue to fulfill a significant amount of money needs.
1Step 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.
2Step 2: Meanings of bond 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.