Receivables for completed sidewalks financed by special assessment bonds with no city liability should be reported as assets in government-wide statements. Which option describes this correctly?

• A. Assets (receivables) in government-wide statements
• B. Liabilities in governmental funds
• C. Revenues in the Special Revenue Fund
• D. Interfund Transfers

Answer: (A)

In government-wide statements, financial resources are shown on an accrual basis, focusing on economic resources. Receivables for special assessments that finance improvements represent amounts that will be collected from property owners in the future, so they are assets of the government. Because there is no city liability for these bonds, there is no corresponding payable to record, leaving the receivable as the asset on the government-wide balance sheet.

The other options don’t fit this presentation: a liability in governmental funds would only apply if the government had an outstanding obligation to pay, which isn’t the case here; recognizing revenues in a Special Revenue Fund would reflect current-year inflows rather than a future receivable from property owners; and interfund transfers are movements of resources between funds, not receivables from the public.