contestada

Scott Drilling Contractors recently issued a corporate bond on which it expects to pay interest for the next twenty years. Scott would record this as a __________ on its balance sheet.

Respuesta :

Answer: Long-term Liability

Explanation:

Long-term liabilities are those debt obligations that a company has which it will only pay off in a period more than a year.

As the corporate bond that Scott Drilling Contractors issued is one that will see them making payments for 20 years, that Corporate Bond which is a debt obligation qualifies as a long-term liability and thus will be recorded as such.