Question - James County issued demand bonds for construction of a county maintenance building. Before year-end the county entered into a two-year noncancellable take-out agreement with a local bank. How should the demand bonds be reported in the county's government-wide financial statements?
a. Fund balance - restricted (demand bonds)
b. Other financing source - demand bonds
c. Current liability (demand bonds payable)
d. Long-term liability (demand bonds payable)