Final answer:
Bond Anticipation Notes (BANs) are recorded as current liabilities in the Governmental Activities column of the government-wide statement of net position since they are typically due within one year. The correct answer is option: a. Current liabilities.
Step-by-step explanation:
In the Governmental Activities column of the government-wide statement of net position, Bond Anticipation Notes (BANs) are recorded as current liabilities. Bond Anticipation Notes are short-term debt instruments issued by governments to finance upcoming projects or to balance out cash flows; they are expected to be paid off with long-term financing in the near future.
Since BANs are payable within one year, or within the entity's operating cycle if longer, they are categorized as current liabilities on the balance sheet. It is essential to understand this classification for proper financial reporting and analysis in governmental accounting.