The liability for general obligation bonds issued for the benefit of a governmentally owned electric utility and serviced by its earnings should be recorded in:
A. An internal service fund.
B. An enterprise fund.
C. The governmental activities accounts.
D. An enterprise fund and the business-like activities accounts.
Answer: B
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Some differences between people, such as height and weight, are innate.
Answer the following statement true (T) or false (F)
When an entity moves into a significant new line of business, all of the following increase except:
A. acceptable audit risk. B. client risk. C. risk of material misstatement. D. entity business risk.
Graeme is chairing a department. He saw that Doris submitted a proposal that includes resources from his department. The resources are of little importance, but he decided that since Doris failed to seek his perspective before submitting the proposal, he will make sure the proposal is not approved and will argue against passing the proposal. Graeme is engaging in what type of conflict management strategy?
A. compromise B. collaboration C. competition D. avoidance
On January 1, a company issued a $500,000, 10%, 8-year bond payable, and received proceeds of $473,845. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The amount of discount amortized each period is $1,634.69.
Answer the following statement true (T) or false (F)