Which of the following liabilities could appear in a governmental fund balance sheet?

In governmental accounting, the focus is on short-term financial resources and obligations that affect the current fiscal period. Governmental funds, such as general funds or special revenue funds, typically recognize liabilities that are due and payable within the current period.

Looking at the individual liabilities mentioned:

• The liability for estimated claims and judgments relates to potential future payouts that will occur beyond the current period, which aligns more with long-term liabilities rather than those recognized within a governmental fund balance sheet.

• Obligations under long-term operating leases, particularly those with scheduled rent increases that are not yet due, also reflect commitments that are not short-term, making them better suited for government-wide financial statements rather than a governmental fund balance sheet.

• A net pension obligation typically represents a long-term liability concerning future pension benefits owed to employees, reflecting a long-term commitment that again does not align with the short-term focus of governmental funds.

In summary, governmental fund balance sheets primarily reflect current liabilities that are expected to be settled within the current financial period. None of the liabilities presented in the choices are classified as current liabilities in this context, which makes the option indicating that none could appear on a governmental fund balance sheet the accurate choice.