A government issues 10-year bonds to finance construction of an addition to city hall. The bonds payable should be reported in the

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Quizplus · Accepted Answer

The correct answer is D) General Long-Term Liabilities accounts. This is because when a government issues long-term debt, such as 10-year bonds, to finance capital projects like construction, the debt is recorded in the General Long-Term Liabilities accounts, not in the fund accounts. The Capital Projects Fund would be used to track the resources used for the construction project itself, but the long-term liability associated with the bonds would be reported in the General Long-Term Liabilities accounts.

A Government Issues 10-Year Bonds to Finance Construction of an Addition