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.
Correct Answer:
Verified
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