Question

Which of the following are properly accounted for in the governmental fund accounts?

a) Tax supported general obligation bonds.
b) Obligations under leases used to finance general capital assets.
c) The long-term portion of judgments and claims.

Answer 1

Tax-supported general obligation bonds are properly accounted for in the governmental fund accounts.

Step-by-step explanation:

Properly accounted for in the governmental fund accounts are tax-supported general obligation bonds. These bonds are issued by the government and are considered low-risk because the government is virtually certain to pay off the bond. They provide a stream of payments in the future for the government. For example, if a local government issues bonds to finance a new school, the payments received from the bonds will be recorded in the governmental fund accounts.