General Obligation Bonds Issued for the Benefit of Enterprise Funds,with

question 28

Multiple Choice

General obligation bonds issued for the benefit of enterprise funds,with the intent of paying bond principal and interest from revenues of the enterprise fund,should be reported as a liability in the balance sheet of the

• A) Enterprise fund.
• B) Governmental activities.
• C) Both the enterprise fund and the governmental activities accounts.
• D) Enterprise fund and a disclosure is added to the financial statement notes explaining the contingent liability of the general government if enterprise funds are insufficient to pay principal and interest.

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Definitions:

Misinterpretation

A misunderstanding or incorrect explanation of words, actions, or symbols.

Time Pressure

The stress or urgency to complete tasks or make decisions within a limited timeframe, which can affect performance and well-being.

Interpersonal Barriers

Obstacles that hinder effective communication and interaction between individuals, often caused by factors like miscommunication, cultural differences, or personal biases.

Overly Technical Language

The use of highly specialized or complex jargon and terminology that may be difficult for non-experts to understand.