AJS522 dqs Week Six

Mar 29th, 2015
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Compare and contrast revenue bonds, general bonds, general obligation bonds, short-term borrowing, and creative financing. DQ 2 Compare the manner in which budgetary accounting is accomplished in a federal agency with that of a municipality.

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AJS522 DQs Week SixDQ 1Compare and contrast revenue bonds, general bonds, general obligation bonds, short-term borrowing, and creative financing.Revenue bonds are a municipal bond designed to fund income-producing projects while general bonds are funded through surety companies. The general bond is secured by collateral such as property. Revenue bonds are secured by the revenue that will be made by the project. A good example is a tool bridge. The bond will fund the toll bridge but the tolls paid by travelers will create the revenue. General obligation bonds are municipal bonds that are supported by taxes that are raised in the specific municipality. The municipality commits its full resources to paying bondholders, including general taxation and the ability to raise more funds through credit (2008). Short term borrowing refers to a type of loan were the lender borrows

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