A business entity is an individual, association, or organization with control over economic resources and which engages in economic activities.
a. True
b. False
Indicate whether the statement is true or false
Question 2
A government has 1,000,000 of 6, 10-year general obligation bonds outstanding. The bonds were issued on November 1, 20X7 to finance construction of a general capital asset. Interest is payable semiannually on November 1 and May 1 .
The bonds also require an annual principal payment of 100,000 on May 1 . What amount of debt service expenditures should the government report for the year ended December 31, 20X8?
A. 60,000.
B. 90,000.
C. 160,000.
D. 190,000.
