In order to compute the interest coverage on revenue bonds,one would look in the CAFR at the:
A) Government-wide Statement of Activities.
B) Enterprise funds Statement of Revenues, Expenses, and Changes in Net Assets.
C) Budgetary Comparison Schedule.
D) Government-wide Statement of Activities

Question

Quizplus · Accepted Answer

The Enterprise funds Statement of Revenues, Expenses, and Changes in Net Assets is the section of the CAFR that provides information on revenue bonds, which are typically used to finance enterprise fund operations. The interest coverage ratio is calculated by dividing operating income by interest expense, which can be found in this statement. The other options, such as the Government-wide Statement of Activities and Budgetary Comparison Schedule, may not provide specific information on revenue bonds or enterprise funds.

In Order to Compute the Interest Coverage on Revenue Bonds,one