Debt That Is Recorded as a Liability in the General

question 10

Multiple Choice

Debt that is recorded as a liability in the general fund because it is expected to be paid with available financial resources is:

• A)serial debt.
• B)long-term vendor financing.
• C)a capital lease.
• D)operating debt.

---

Definitions:

Net Income

The total profit of a company after all expenses, taxes and costs have been subtracted from total revenue.

Variable Manufacturing Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor.

Break-Even Point

The point at which total revenues equal total costs, meaning no profit or loss is incurred.

Fixed Costs

Expenses that do not change in proportion with the activity of a business, such as rent, salaries, and insurance.