Revenue bonds sold by a water utility fund,upon sale,would be recorded:

Question

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Revenue bonds sold by a water utility fund would be recorded in an enterprise fund as a liability, as they represent a debt that the fund is responsible for paying back. They would not be recorded as an "Other Financing Source" or an addition to net assets, as those are typically used for revenues or other sources of income. They would not be recorded in the general long-term debt accounts, as those are used for debts of the entire government, rather than specific funds or departments.

Revenue Bonds Sold by a Water Utility Fund,upon Sale,would Be