5) When payrolls and otherliabilitiesare incurred and must be paid before substa

5) When payrolls and otherliabilitiesare incurred and must be paid before substantial amounts of cash will be collected what type of short-term note is desirable and secured by a governments power to tax?A.TaxEncumbrances Note PayableB. Tax Budget Note PayableC.Tax ReliefNote PayableD. Tax Anticipation Note Payable6) What type of serial bond schedules an increase each year in annual principalrepaymentapproximately equivalent to the decrease ininterest payments?A. RegularB. IrregularC.DeferredD.Annuity7) What is the effect on the General Funds unreserved fund balance when capital assets are purchased during a year from General Fund revenues?A. There is no effect since one asset (cash) is replaced by another (capital asset)B. Unreserved fund balance is decreasedC. Unreserved fund balance is increasedD. None of the above capital assets must be purchased through a capital projects fund