One of the most restrictive related to collateralizing an enterprise fund is a bond covenant.

Why is that?

A. Bond covenants have to paid through the general operating fund.

B. Bond covenants are not shown either in the enterprise fund or government-wide

statements.

C. Bond covenants presuppose that the asset that is being collateralized to ensure

principal and interest payments.

D. Bond covenants are recorded at discounted cash flows