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Bill and Bill Limited, a collection company, issued a 10 year bond in 2010 which is...


Bill and Bill Limited, a collection company, issued a 10 year bond in 2010 which is repayable in total on the 10th anniversar
Bill and Bill Limited, a collection company, issued a 10 year bond in 2010 which is repayable in total on the 10th anniversary of the issue. They have a year end of December 31, 2019. On the 2019 financial statements, where will this bond be shown? Cash flow statement as a financing activity, Current liabilities Long-term liabilities O Cash flow statement as an investing activity.
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Correct answer------------Current liabilities.

.

A liability that is required to be paid or settles with a period of one year is considered as current liability.

Bonds payable are to be paid with 1 year on December 31,2019 hence they will be classified as a current liability instead of loang term liability.

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