Government should report the portion of general obligation bonds due within one year as current liabilities in its Debt Service Fund.

Question

Quizplus · Accepted Answer

Long-term liabilities, such as general obligation bonds and interest on them, generally are not reported in governmental funds until they are due and payable. This means that governmental fund balance sheets do not show a liability for even the current portion of long-term bonds and related interest unless it becomes due before year-end and is not paid, or unless it meets an exception to the due and payable rule.

Government Should Report the Portion of General Obligation Bonds Due