General long-term debt of a government includes
A) All future financial obligations.
B) All future financial obligations that result from past transactions.
C) All future financial obligations that result from past transactions for which the government has already received a benefit.
D) All future financial obligations that are backed by the government's general credit and revenue raising power and that result from past transactions for which the government has already received a benefit.

Question

Quizplus · Accepted Answer

General long-term debt of a government specifically refers to obligations that are backed by the government's general credit and revenue-raising power, and that arise from past transactions for which the government has already received a benefit. This definition excludes future financial obligations not yet incurred or those for which no benefit has been received.

General Long-Term Debt of a Government Includes