If Taxes Are Levied Specifically for Payment of Interest and Principal

question 89

Multiple Choice

If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are:

• A) Included as a liability of the General Fund.
• B) Recorded as operating transfers to the debt service fund.
• C) Included as revenues of the debt service fund.
• D) Both A and B are correct.

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Definitions:

International Law

A body of rules and principles that governs the relations and interactions between nations.

Unrestricted Submarine Warfare

A type of naval warfare in which submarines attack merchant ships without warning, as practiced by Germany in both World Wars.

Allied Supply Shipments

The transportation and delivery of military and humanitarian supplies by the Allied nations to their forces and occupied territories during times of conflict, particularly noted in World Wars I and II.

American Mobilization

the process wherein the United States prepares and organizes its military and civilian resources for war or national defense, notably during World War II.