Which of the following statements is True?
A) Debt margin is reported in the governmental activities column of the government-wide statements.
B) Debt limit represents the total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any one time.
C) Overlapping debt is a calculation of the difference between the amount of debt limit calculated as prescribed by law and the net amount of outstanding indebtedness subject to limitation.
D) All of the given statements are True.

Question

Quizplus · Accepted Answer

Debt limit represents the maximum amount of debt that a government can legally incur, and it is set by law or the constitution. A is incorrect as debt margin is reported in the business-type activities column. C is incorrect as overlapping debt is the amount of debt issued by one government that is also guaranteed by another government entity, and it is not related to debt limit. D is incorrect as only statement B is true.

Which of the Following Statements Is True