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

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?

A) It should report $40,000 as a current liability and disclose $960,000 in a note
B) It should report $40,000 as a current liability and $960,000 as a noncurrent liability
C) It should report $90,000 as a current liability and $910,000 as a noncurrent liability
D) It should report no liability for this obligation on the fund statement of net position

Correct Answer:

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