Accrued interest on the following type of debt is reported in a governmental fund:

Question

Quizplus · Accepted Answer

Accrued interest on short-term tax anticipation notes payable is reported in a governmental fund because these notes are considered current liabilities, reflecting short-term borrowing that will be repaid within the fund's current operating cycle. Other options like serial bonds, general obligation bonds, and long-term bank notes typically involve long-term debt arrangements, and their accrued interest would not be reported in the same manner within a governmental fund.

Accrued Interest on the Following Type of Debt Is Reported