Select the Key Term That Relate to Accounting for the Business-Type

question 17

Essay

Select the key term that relate to accounting for the business-type activities of state and local governments from the list that best matches with the following definition.
A. Allowance for Funds Used during Construction
B. Revenue bonds
C. Utility plant acquisition adjustment
D. Regulatory accounting principles
E. Original cost
F. Historical cost
G. General obligation bonds
________ 1. In utility accounting, the net cost for the period of construction of borrowed funds used for construction purposes and a reasonable rate on other funds so used.
________ 2. Accounting principles prescribed by federal or state regulatory commissions for investor-owned and some governmentally owned utilities.
________ 3. Bonds whose principal and interest are payable exclusively from earnings of a public enterprise.
________ 4. Bonds which carry the pledge of the government entity's full faith and credit, although the intent may be to service them from proprietary revenues rather than general taxes.
________ 5. The account that captures the premium paid on a utility plant purchased by a government.

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Definitions:

Dependent Variable

In statistical analysis, this is the variable that is being tested and measured, often seen as the outcome influenced by independent variables.

Marginal Mean

The mean of a variable across levels of another variable, typically in the context of analysis of variance.

Means

Refers to the mathematical average of a set of numbers or quantities, carrying the same definition but rephrased for clarity.

Interaction Effect

A statistical phenomenon in which the effect of one independent variable on a dependent variable differs depending on the value of another independent variable.