6. Which of the following statements concerning debt refundings is true? a. Advance refundings do not result
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6. Which of the following statements concerning debt refundings is true?
a. Advance refundings do not result in immediate, direct retirement of existing long-term debt.
b. Often, resources of an irrevocable trust are used to service old long-term debt, even though the liability has been removed from the financial statements of the issuing government.
c. Both legal defeasance and in-substance defeasance may result in the removal of the old debt from the original issuer's balance sheet.
d. All of the above statements are true statements.
e. Items a and b only are true.
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Related Book For
Governmental And Nonprofit Accounting Theory And Practice
ISBN: 9780132552721
9th Edition
Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,
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