A Municipality Incurs Liabilities in Its Operations (Such as Vacation

Multiple Choice

A municipality incurs liabilities in its operations (such as vacation leave and expected claim settlements) that could be classified as "long-term" because cash payouts will not occur for more than one year.The liabilities result from both governmental and proprietary activities.Where are these long-term liabilities reported in the fund-level balance sheets?

A) as noncurrent liabilities,in the appropriate fund column,on both fund level balance sheets
B) as noncurrent liabilities on both fund level balance sheets,but the long-term liabilities for governmental funds are reported only in the "total" column and not in any fund column
C) as noncurrent liabilities in the proprietary funds balance sheet;but long-term liabilities are not reported in the governmental funds balance sheet
D) long-term liabilities are not reported in the fund level balance sheets of either governmental or proprietary funds