The Following Are Key Terms in Chapter 7 That Relate

The following are key terms in Chapter 7 that relate accounting for the business-type activities of state and local governments:
A. Allowance for Funds Used during Construction
B. Revenue bonds
C. Utility plant acquisition adjustment
D. Regulatory accounting principles
E. Original cost
F. Historical cost
G. General obligation bonds
For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.
_____ 1. In utility accounting,the net cost for the period of construction of borrowed funds used for construction purposes and a reasonable rate on other funds so used
_____ 2. Accounting principles prescribed by federal or state regulatory commissions for investor-owned and some governmentally owned utilities.
_____ 3. Bonds whose principal and interest are payable exclusively from earnings of a public enterprise.
_____ 4. Bonds which carry the pledge of the government entity's full faith and credit,although the intent may be to service them from proprietary revenues rather than general taxes.
_____ 5. The account that captures the premium paid on a utility plant purchased by a government.