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General Obligation Bonds Issued for the Benefit of Enterprise Funds,with

Question 34

Multiple Choice

General obligation bonds issued for the benefit of enterprise funds,with the intent of paying bond principal and interest from revenues of the enterprise fund,should be reported as a liability in the balance sheet of the


A) Enterprise fund.
B) Governmental activities.
C) Both the enterprise fund and the governmental activities accounts.
D) Enterprise fund and a disclosure is added to the financial statement notes explaining the contingent liability of the general government if enterprise funds are insufficient to pay principal and interest.

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