Which of the Following Is True Regarding the Recording of Long

question 27

Multiple Choice

Which of the following is true regarding the recording of long term debt in an enterprise fund?

• A) When revenue bonds are sold at par, Cash is debited and Bonds Payable is credited.
• B) The bonds would be reported in both an enterprise fund and in the government-wide statements.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Average Total Cost

The cost per unit is calculated by dividing the sum of fixed and variable production costs by the total quantity of units produced.

Market Price

The current price at which an asset or service can be bought or sold in a particular marketplace.

Marginal Revenue

The profit gained by selling an extra unit of a product or service.

Market Price

The ongoing cost at which one can purchase or sell a good or service in the market.