What is conduit debt? Why are governments required to report it only in notes to their ﬁnancial statements, not on their balance sheets?
Answer to relevant QuestionsWhat distinguishes moral obligation bonds from other types of debt? Why would one government assume a moral obligation for another government’s bonds?In anticipation of issuing of long-term bonds, a state issues on May 1, 2015 $200 million of 60-day BANs to ﬁnance highway construction. It expects to roll over the BANs into long-term bonds within 60 days. Its ﬁscal ...In August 2014, voters of Balcones, a medium-sized city, approved a $15 million general obligation bond issue to ﬁnance the construction of recreational facilities. In order to begin construction immediately, without ...This problem is based on a recent annual report of the City of Tucson. Dates have been changed.1. The letter of transmittal from the city's ﬁnance director reports that the city's bonds were rated AA by Standard & Poor's. ...For what types of activities are internal service funds used to account? Provide several examples. Is a government required to account for the activities you cite in an internal service fund, or may it account for them ...
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