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A government borrowed $20 million by issuing general obligation bonds to finance construction of a new airport terminal for its Airport Enterprise Fund. The bonds

  1. A government borrowed $20 million by issuing general obligation bonds to finance construction of a new airport terminal for its Airport Enterprise Fund. The bonds were issued at par, and the government intends to service the bonds from Enterprise Fund revenues. The proceeds of the bonds should be reported as

    A.

    Revenues in the Enterprise Fund statement of revenues, expenses, and changes in net assets equity.

    B.

    Capital and related financing activities in the Enterprise Fund statement of cash flows.

    C.

    Two of the listed are correct

    D.

    An other financing source in the Enterprise Fund statement of revenues, expenses, and changes in net assets.

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