Author Question: A government borrowed 20 million by issuing general obligation bonds to finance construction of a ... (Read 94 times)

V@ndy87 · **on:** Jul 6, 2018

A government borrowed 20 million by issuing general obligation bonds to finance construction of a new airport terminal for its Airport Enterprise Fund.

The bonds were issued at par, and the government intends to service the bonds from Enterprise Fund revenues. The proceeds of the bonds should be reported as
a. An other financing source in the Enterprise Fund statement of revenues, expenses, and changes in net assets.
b. Capital and related financing activities in the Enterprise Fund statement of cash flows.
c. Revenues in the Enterprise Fund statement of revenues, expenses, and changes in net assets equity.
d. Both items a and b are correct.

Question 2

The profit on merchandise sold before expenses is
a. Gross Sales
b. Gross Profit
c. Net Sales
d. Net Income