Which of the following statements is true regarding bond anticipation notes?Multiple ChoiceBond anticipation notes can be reported as short-term liabilities in the governmental fund financialstatements.Bond anticipation notes must be reported as long-term liabilities in the government-wide financialstatements.Bond anticipation notes can be classified as either short-term liabilities or long-term liabilities in boththe governmental fund and government-wide financial statements depending upon specifications andintent.Bond anticipation notes are reported in the governmental fund financial statements as short-termliabilities and in the government-wide financial statements as long-term liabilities.

A bond is a type of financial security in which the issuer owes the holder a debt and is obligated –…

Answered: Which of the following statements is…

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Which of the following statements is true regarding bond anticipation notes?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter13: Auditing Debt, Equity, And Long-term Liabilities Requiring Management Estimates

Section: Chapter Questions

Problem 31CYBK

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Question

Which of the following statements is true regarding bond anticipation notes?
Multiple Choice
Bond anticipation notes can be reported as short-term liabilities in the governmental fund financial
statements.
Bond anticipation notes must be reported as long-term liabilities in the government-wide financial
statements.
Bond anticipation notes can be classified as either short-term liabilities or long-term liabilities in both
the governmental fund and government-wide financial statements depending upon specifications and
intent.
Bond anticipation notes are reported in the governmental fund financial statements as short-term
liabilities and in the government-wide financial statements as long-term liabilities.

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