Financial Resources Set Aside to Pay Principal and Interest on General

question 39

Multiple Choice

Financial resources set aside to pay principal and interest on general long-term debt may be accounted for in which of the following fund types?

• A) Private-purpose trust fund.
• B) Debt service fund.
• C) Principal and interest trust fund.
• D) Internal service fund.

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Definitions:

Flexible Budget

A report showing estimates of what revenues and costs should have been, given the actual level of activity for the period.

Revenue Variance

The difference between the actual revenue earned by a business and its expected (or budgeted) revenue, which can be favorable or unfavorable.

Sales Revenue

The income received by a company from its sales of goods or the provision of services before any expenses are deducted.

Actual Level

The real, observed state or value of a variable or metric at a given point in time, opposed to theoretical or planned levels.