A city issues five-year bonds payable to finance construction of a new school. What recording should be made?a. Report the liability in the government-wide financial statements; show an other financing source in the fund financial statements.b. Report a liability in the government-wide financial statements and in the fund financial statements.c. Show an other financing source in the government-wide financial statements and in the fund financial statements.d. Show an other financing source in the government-wide financial statements; report a liability in the fund financial statements.
A city issues five-year bonds payable to finance construction of a new school. What recording should be made?a. Report the liability in the government-wide financial statements; show an other financing source in the fund financial statements.b. Report a liability in the government-wide financial statements and in the fund financial statements.c. Show an other financing source in the government-wide financial statements and in the fund financial statements.d. Show an other financing source in the government-wide financial statements; report a liability in the fund financial statements.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A city issues five-year bonds payable to finance construction of a new school. What recording
should be made?
a. Report the liability in the government-wide financial statements; show an other financing source
in the fund financial statements.
b. Report a liability in the government-wide financial statements and in the fund financial statements.
c. Show an other financing source in the government-wide financial statements and in the fund
financial statements.
d. Show an other financing source in the government-wide financial statements; report a liability
in the fund financial statements.
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