The sale of revenue bonds by a water utility fund would be recorded:
A) In the governmental activities column as a liability.
B) In an enterprise fund as Proceeds of Bonds.
C) In an enterprise fund as a liability.
D) In an enterprise fund as a revenue.

Question

Quizplus · Accepted Answer

The revenue bonds sold by a water utility fund are considered a liability of the enterprise fund. Therefore, the sale of these bonds would be recorded in an enterprise fund as a liability.

The Sale of Revenue Bonds by a Water Utility Fund