1. What is the distinction between general obligation debt and revenue debt? Which one is likely to bear higher interest rates?
2. How would you compare the accounting for enterprise funds with that of (a) businesses and (b) governmental funds? Summarize the reasons both for and against accounting for enterprise funds differently than governmental funds.
3. It is often said that ”self-insurance” is an oxymoron. Why? If it is, what are the implications for a government that is permitted to recognize self-insurance premiums as a general fund expenditure when paid to an internal service fund?
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