Bonds payable are usually classified on the balance sheet as a) long-term liabilities.
This classification is due to the nature of bonds, which typically have maturities that extend beyond one year. When a company issues bonds, it borrows money from investors and agrees to pay them interest over a specified period, returning the principal at maturity. Because these obligations are not due within the current accounting period, they are classified as long-term liabilities. This distinction helps investors and analysts understand the company’s financial obligations in relation to its assets and short-term liabilities.