Use the Following Information to Answer Question

question 10

Multiple Choice

Use the following information to answer question
Due to changes in the prevailing interest rates, Washington County has decided to issue new 5% bonds and place the proceeds with a trustee in a manner structured to satisfy all the GASB requirements for an in-substance defeasance of an existing 6.5% bond issue.The 6.5% bonds were originally issued to fund highway projects and the debt is reported in the Schedule of Long-term Obligations and in the governmental activities column of the government-wide financial statements.The old 6.5% bonds are still actively traded in the bond market and will be until their maturity.The new 5% bonds will be sold to an institutional buyer who may also sell them in the bond market.
-Which bonds should be recognized in the Schedule of Long-Term Obligations?

• A)Neither the 6.5% nor the 5% bonds.
• B)Both the 6.5% bonds and the 5% bonds.
• C)Only the 6.5% bonds.
• D)Only the 5% bonds.

---

Definitions:

Labor Turnover

Labor turnover is the rate at which employees leave and are replaced in a company, indicating stability or volatility in the workforce.

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs to inputs in the production process.

Training

The process of enhancing the skills, capabilities, and knowledge of employees for the purpose of improving job performance.

Capital

Capital refers to financial assets or physical resources that are used in the production of goods and services, including machinery, buildings, or money invested.