Question

overlapping debt should be reported in which of the following ways? group of answer choices it should be reported in the schedule of changes in long-term obligations. it should be disclosed as a note to the financial statements. it should be reported in a schedule in the statistical section of the annual report. it should not be reported in the financial statements of the reporting entity.

Answer 1

Overlapping debt should be disclosed as a note to the financial statements, as it represents shared financial responsibility with other entities.

Step-by-step explanation:

Overlapping debt should be disclosed in the financial statements of the reporting entity. Specifically, it should be disclosed as a note to the financial statements. This is because overlapping debt represents the portion of debt that is outside the direct control of the reporting entity but for which it is still responsible to pay, usually because of joint agreements or shared boundaries with other governmental entities. It is important for stakeholders to have this information to assess the full scope of financial responsibilities of the reporting entity.