The bonds that are not pledged against revenue stream or specific assets are classified as __________?
Correct answer: A. general obligation bonds
- A. general obligation bonds
- B. general obligation notes
- C. general obligation tax
- D. general obligation savingsAccounting & Auditing
Explanation
General obligation bonds are backed by the issuer’s taxing power rather than by a particular asset or revenue stream. Revenue bonds, in contrast, are secured by specified project revenues.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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