Which of the following groups of companies are all examples of a merchandising business?
a. Delta Airlines, Marriott, Gap
b. Gap, Amazon, NIKE
c. GameStop, Sony, Dell
d. GameStop, Best Buy, Gap
Question 2
A government defeased in substance 5,000,000 of outstanding general obligation bonds several years prior to their maturity. The government paid 6,000,000 into an irrevocable trust to accomplish the defeasance in substance.
The payment included 3,000,000 of proceeds from new bonds issued that were to provide resources for the bond defeasance. The other 3,000,000 had been accumulated over previous years from taxes and interest earnings in the Debt Service Fund. The government should report the payment in its Debt Service Fund as
a. Other financing uses of 6,000,000
b. Expenditures of 6,000,000
c. Other financing uses of 3,000,000 and expenditures of 3,000,000
d. Other financing uses of 5,000,000 and expenditures of 1,000,000
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