If Recording a General Long-Term Liability in a Governmental Fund

question 8

True/False

If recording a general long-term liability in a governmental fund upon issuing a bond, the credit should be to a bonds payable account.

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Definitions:

Material Breach

A significant violation or failure to perform one's obligations under a contract, which justifies the non-breaching party's termination of the contract.

Discharge by Performance

The termination of contractual obligations by fully executing the duties and responsibilities outlined in the contract.

Contractual Duty

A legal obligation in a contract requiring a party to act or not act in a certain way.

Statute of Limitations

A statute that establishes the deadline by which legal cases must be filed after an incident occurs.