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If Taxes Are Levied Specifically for Payment of Interest and Principal

Question 88

Multiple Choice

If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are:


A) Included as a liability of the General Fund.
B) Recorded as operating transfers to the debt service fund.
C) Included as revenues of the debt service fund.
D) Both A and B are correct.

Correct Answer:

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