Which of the Following Is False with Respect to Long-Term

question 33

Multiple Choice

Which of the following is false with respect to long-term debt?

• A) Term bonds mature in their entirety on a given date.
• B) If a sinking fund is required by creditor or law, the unexpended resources would be classified as restricted.
• C) Resources transferred to the debt service fund from the General Fund would typically be classified as Other financing sources by the debt service fund.
• D) All of the above statements are true.

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Definitions:

Sole Proprietorships

Businesses owned and operated by one individual; the most common form of business organization in the United States.

S Corporation

A corporation taxed as though it were a partnership with restrictions on shareholders.