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

Question

Quizplus · Accepted Answer

The bonds payable are a long-term liability and should be reported in the General Long-Term Liabilities account. The General Fund and Capital Projects Fund are used to account for different types of government activities, but are not used for reporting long-term liabilities. The General Capital Asset account is used to report the government's capital assets, such as buildings or equipment, and is not relevant to reporting liabilities.

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