At December 31,2013,a Water Enterprise Fund has outstanding revenue bonds payable of $1 million,of which $40,000 is due to be paid on February 15,2014,and $50,000 is due to be paid on August 15,2014.How should it report this liability in its fund statement of net position as of December 31,2013?

Question

Quizplus · Accepted Answer

The correct answer is C because the Water Enterprise Fund should classify as current liabilities those portions of the debt that are due within one year of the balance sheet date (both the $40,000 due in February and the $50,000 due in August, totaling $90,000), and the remaining $910,000 as a noncurrent liability.

At December 31,2013,a Water Enterprise Fund Has Outstanding Revenue Bonds