Bond anticipation notes are

Question

Quizplus · Accepted Answer

Bond anticipation notes can be treated as general long-term liabilities even if their term is one year or less. This is because they are issued in anticipation of issuing long-term bonds to finance a specific project or capital expenditure, and are often structured as interim financing until the long-term bonds can be sold. However, they may also be treated as fund liabilities if they are issued by a specific fund with a defined purpose. Therefore, the answer is D, which states that bond anticipation notes can be treated as general long-term liabilities even if their term is one year or less.

Bond Anticipation Notes Are