The issuance of general long-term bonds requires recognition by the fund receiving the proceeds and by the business-type activities.

Question

Quizplus · Accepted Answer

Governmental funds do not record long-term debt; it is recorded in the governmental (not business-type) activities accounts at the government-wide level. However, the proceeds of the bond are recorded in a governmental fund, typically the capital projects fund.

The Issuance of General Long-Term Bonds Requires Recognition by the Fund