$18.$ Obligations of property owners within a particular government for their proportionate share of debts of other governments with whom their government shares boundaries are called

a$)$ Overlapping debt.

b$)$ Conduit debt.

c$)$ Committed debt.

d$)$ Moral obligation debt.

$19.$ Overlapping debt should be reported in which of the following ways?

a$)$ It should be reported in the schedule of changes in long$-$term obligations.

b$)$ It should be disclosed as a note to the financial statements.

c$)$ It should be reported in a schedule in the statistical section of the annual report.

d$)$ It should not be reported anywhere in the annual report.

$20.$ Obligations issued in the name of a government on behalf of a nongovernmental entity are called

a$)$ Overlapping debt.

b$)$ Conduit debt.

c$)$ Committed debt.

d$)$ Moral obligation debt.

$21.$ Pacheco City issued $$20$ million of bonds at par. The city loaned the proceeds to Sharpe Cheese Processors to expand the size of its facility, which would allow Sharpe to hire additional workers. The loan payments from Sharpe to the city are established to match the principal and interest payments on the bond issue. The bonds are payable exclusively from the loan repayments by Sharpe. The bonds are secured by the additional plant facilities built by Sharpe. Where should the city report the bonds in its annual financial report?

a$)$ In the government$-$wide financial statements.

b$)$ In the notes to the financial statements.

c$)$ In the proprietary fund financial statements.

d$)$ In any of the above ways.

$22.$ Industrial development bonds are issued in the name of a government with the proceeds used to attract private businesses to a community. Which of the following is a true statement about industrial development bonds?

a$)$ The proceeds are used by the private corporations and principal and interest payments are made by the private corporation. The government backs the bonds in the event of default by the private corporation.

b$)$ The proceeds are used by the private corporations and principal and interest payments are made by the private corporation. The government does not back the bonds in the event of default by the private corporation.

c$)$ The proceeds are used by the government to build infrastructure to service private corporations, with principal and interest payments made by the government out of the additional tax revenues received from the private corporation.

d$)$ The proceeds are used by the government to build infrastructure to service private corporations, with principal and interest payments made by the private corporation in lieu of property taxes.