A government defeases in substance old general government bonds with the proceeds of new bonds that were issued for that purpose. Which bonds should be reported in the General Long-Term Liabilities accounts after the defeasance?
a. The refunded bonds, but not the refunding bonds.
b. The refunding bonds, but not the refunded bonds.
c. Both the refunding bonds and the refunded bonds.
d. Neither the refunding bonds nor the refunded bonds.
Question 2
If merchandise is bought with a list price of 3,500, subject to a 25 percent trade discount and a cash discount of 2/10, n/30, the amount credited to Accounts Payable is 2,625.
a. True
b. False
Indicate whether the statement is true or false
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