These Are the Most Common Type of Municipal Bonds and Are

question 108

Multiple Choice

These are the most common type of municipal bonds and are backed by projected revenue streams from the infrastructure built by the bond. These revenues can be in the form of rental r user fees for facilities or even tolls for road improvements. What are these?

• A) Doubled barreled bonds
• B) Moral obligation bonds
• C) Special tax bonds
• D) Revenue bonds

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Definitions:

Trend Analysis

The process of comparing business data over time to identify any consistent results or trends.

Aging Asset Base

Refers to a company's fixed assets becoming older and potentially less efficient or valuable over time.

Expensing R&D

The process of charging research and development costs as expenses in the period they are incurred rather than capitalizing them.

Conservatism Principle

an accounting principle that guides companies to report lower values for assets and revenues, higher values for liabilities and expenses when in doubt, ensuring that financial statements do not overstate the company’s financial position.