In accordance with a bond agreement,assets are being accumulated in a sinking fund to pay bonds due in 20 years.The assets are reported as Investments.What other information should be reported about that item on the face of the government-wide financial statements?

Question

Quizplus · Accepted Answer

The assets accumulated in the sinking fund should be reported as part of net position restricted for debt service, as they are set aside for the specific purpose of paying off the bonds due in 20 years. The other options do not accurately reflect the purpose or restrictions of the sinking fund.

In Accordance with a Bond Agreement,assets Are Being Accumulated in a Sinking