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soldier1979 [14.2K]
3 years ago
11

A city borrows $800,000 in January because it does not receive property taxes until May. It borrows on a tax anticipation note,

which it will repay in May when taxes are collected. How would the city classify the note if it were to prepare governmental-type fund financial statements on March 31?
Business
1 answer:
liubo4ka [24]3 years ago
5 0

Answer:

Liability

Explanation:

Liabilities are the company's, in this case the city's, legal financial debts or obligations that arise during the course of its operations.

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