Which of the Following Should Not Be Reported as a Liability

question 20

Multiple Choice

Which of the following should not be reported as a liability of the General Fund?

• A)General obligation bonds payable (due in 10 years).
• B)Vouchers payable.
• C)Tax anticipation notes payable.
• D)Due to federal government.

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Definitions:

Legal Corporation

A legal corporation is an entity that is legally recognized as a separate entity from its owners, providing limited liability protection to its shareholders.

Business Combination

The process of merging two or more companies into one entity, which includes acquisitions and consolidations.

Pooling of Interest Method

An accounting method used in mergers and acquisitions, where the combined assets and liabilities of the merging entities are recorded at their historical costs.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.