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If a Government Does Not Pay Interest or Principal on Its

question 49

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If a government does not pay interest or principal on its debt when due, it is:


Definitions:

Adjusting Entry

An adjusting entry is a journal entry made in accounting records to adjust income and expense accounts so they comply with the accrual concept.

Interest-Bearing Note

A debt instrument in which the issuer pays the holder interest at a specified rate over the term of the note.

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